How do I report a sale of an Inherited Stock in. I can't find anywhere in the software where I can tell it that the stock was inherited. How do I input this in Turbotax?

Forum|Forum|3 years ago
March 1, 2023
1 reply
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I know I can up the basis to the date of death but my downloaded brokers statement has the original purchase date and old basis. I need to know if Turbotax has a place to report this.

TurboTax Online

JohnB5677

Yes, we can help you with both of these issues.

This is the area that you will be entering your information.

Start at Federal
Wages and Income
Scroll to Investments & Savings
Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) [Start or Revisit]
Did you have investment income in 2022? - Yes
Get ready to be impressed Continue.
Select Enter a different way.
Choose the Box Stocks, Bonds, Mutual Funds Continue
Enter your broker.
Answer the question boxes with Yes/No
Answer NO to Did you buy every investment listed on your 1099‑B? Any inherited or gifted investments are not considered bought.
Enter one at a time.
Continue to: Now, enter one sale on your American Century Investments 1099‑B.
One of the boxes will say: How did you receive this investment?
Select I Inherited it in the drop-down menu.
Post your information exactly as it shows on your form including the cost basis.
There is a check box to correct the cost basis.
You should now be able to complete your return.

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daja_vuAuthor

Thanks so much for your reply. I'm not getting the logic tree you presented. I bought the CD and am not using the online version. Also I'm using the "Home & Business" version. This is my logic Tree:

1) Under Personal Income it guides me through all income:

a) Wages and Salaries

b) Unemployment (NO)

c) Interest and Dividends

d) INVESTMENT INCOME:

1) DID YOU SELL ANY INVESTMENTS IN 2022 (YES)

2) Did you get a 1099-B (YES)

3) How do you want to enter Form 1099-B

a) Import (using this it takes me to a screen to provide my broker, then downloads the 100-B (which has the deceased original buying information, not the updated date of death basis.

b) I'll type it myself - Select Brokerage - Continue

c) Sale #1 - 1) I'll enter one sale at a time or

a) Provide total proceed and cost information then "Long term" or "Short term".

b) Any of these less common items (NO) Continue

c) Employee Stock (No) Continue

d) Select any less common adjustments Yes

1) The cost basis on my statement is incorrect *(here I can put in the new Basis).

2) Then it completes the transaction.

Problem is the new basis show up but IRS states I have to print "Inherited" in column b on form 8949 Part 2.

Going to "Forms" and 8949 on Turbotax there is not place to type "Inherited" nor does Turbotax designate "Inherited" any place.

tmunoz

After you check the box for Stock, Bonds, Mutual Funds, a series of questions appears. The last is Did you buy every investment listed on your 1099-B? Be sure to answer No to this question. Then, on the next screen, it will ask How did you receive this investment and one of the options in the drop-down box is I inherited it. This will set up the proper questions for inherited investments.