1099B for inherited stock

Forum|Forum|3 years ago
February 12, 2023
4 replies
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My wife inherited stock upon mother's death and we sold the stock. The 1099B we received only shows proceeds of sale. How do we determine cost basis for show loss incurred, and where do we enter it on TurboTax?

DanaB27

The basis of property inherited from a decedent is generally one of the following:

The fair market value (FMV) of the property on the date of the decedent's death (whether or not the executor of the estate files an estate tax return).
The FMV of the property on the alternate valuation date, but only if the executor of the estate files an estate tax return (Form 706) and elects to use the alternate valuation on that return. (IRS)

Please see Where do I enter a 1099-B? for instructions.

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Anonymous_

Employee

How was the stock "inherited"? Was it a TOD account, joint account, et al.?

Regardless, your cost basis would be the fair market value on the date of death of your wife's mother, computed as the high plus the low on the date of death divided by two (e.g., 30 high plus 28 low = 58 divided by 2 = 29).

You would enter the sale in TurboTax in the Stocks, Bonds, Mutual Funds, Other subsection of the Investment Income section.

EarniepAuthor

It was TOD account

Anonymous_

Employee

Then just calculate the basis as set forth above and enter the transaction in the program.

Make sure you indicate that the stock was acquired from a decedent (or inherited), since the holding period is long-term.

hbl3973

Employee

Earniep,

The website https://www.nasdaq.com/market-activity/quotes/historical may be useful for you in looking up historical stock prices assuming your mother-in-law's death occurred within the past 10 years.

Mike9241

for date acquired type in "inherited". no "". this is because the sale of property inherited is long term no matter how long you actually held the property.