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I inherited securities two years ago that stayed in a trust then distributed to me late 2017. Does this count as long term gains vs short term gains from the 1099B?

Forum|Forum|7 years ago
June 6, 2019
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The 1099B records short term gains (box A) but says if it comes from a descendent that it can count as long term gains (box D) and does this conversion. However, I want to verify that this is still the case since my dad passed in 2015 and the securities stayed in his trust until end of 2017.

TurboTax Business Windows

Best answer by MichaelL1

Inherited assets are Long Term regardless of when you get the asset.

To make sure this gets entered correctly do not do the import, but go to the investment area and enter it as if it were not on a 1099B or change the entry of the 1099B to reflect this.

Since you inherited the stock, your “cost basis” for calculating the gain or loss will generally be the fair market value of the stock on your father's date of death, and this may help your tax situation.

MichaelL1Answer

Employee

Inherited assets are Long Term regardless of when you get the asset.

To make sure this gets entered correctly do not do the import, but go to the investment area and enter it as if it were not on a 1099B or change the entry of the 1099B to reflect this.

Since you inherited the stock, your “cost basis” for calculating the gain or loss will generally be the fair market value of the stock on your father's date of death, and this may help your tax situation.