Solved

1099-B - TOD Inheritance Funds

Forum|Forum|7 years ago
June 3, 2019
1 reply
0 views

My mother had a TOD account which was split among her 4 kids after her passing in 2016. The account was split into 4 new accounts and then the 4 new accounts were closed. This all took place between August 20 and Nov 21, 2016. The 1099-B form from the investment firm has a summary page and then several detail pages. The detail pages are a mixture of Short Term-Noncovered, Long Term-Covered and Long Term-Noncovered. I am able to enter Box 1d and 1e from the summary page but do not know what Sales Category to select. Boxes 1f and 1g are $0 as well as Box 4 is $0. Because these are inheritance funds, do I even need to enter this 1099-B? Do I even owe taxes on these funds which are less than $12k total. Please advise. Thank you! Jill B.

TurboTax Free Edition Online

Best answer by MiriamF

So sorry to hear of your mother's passing.

Inherited property is not taxed until it is sold. Because you got a 1099-B, this property was sold, and you need to report it.

The basis of the property is equal to its worth on the day your mother died. Therefore, the taxable amount should be small relative to the amount of the inheritance.

If you are typing all this in by hand, the summary amounts for long-term and short -term transactions is sufficient. You do not need to enter the individual sales. However, the covered transactions (stocks purchased after 2011, when reporting requirements changed) should be listed separately from the noncovered transactions.

M

MiriamFAnswer

Employee

So sorry to hear of your mother's passing.

Inherited property is not taxed until it is sold. Because you got a 1099-B, this property was sold, and you need to report it.

The basis of the property is equal to its worth on the day your mother died. Therefore, the taxable amount should be small relative to the amount of the inheritance.

If you are typing all this in by hand, the summary amounts for long-term and short -term transactions is sufficient. You do not need to enter the individual sales. However, the covered transactions (stocks purchased after 2011, when reporting requirements changed) should be listed separately from the noncovered transactions.

J

jillburroughs511Author

When you mention "taxable amount" are you referring to the Gain(Loss) column? The end number isn't even $100.00. Where do I put these amounts in TT? TT doesn't ask me to differentiate between Short or Long, or Covered or Non-Covered. My Short Term-Noncovered is a negative number or loss. My Long Term Covered and Non-Covered is a positive number or gain. The statement appears to deduct the negative from the positive and give a combined Total Covered and Non-Covered number that is positive. Is this final number the number I enter into TT and where? Also, what Sales Category do I select? The Long Term – Covered is the majority of the listings, is this what I should select? Please advise. Thanks in advance. Jill B.