Inheritance Tax Question

Forum|Forum|3 years ago
March 9, 2023
1 reply
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Trying to find out how to report a form of inheritance/if reporting is needed. If someone inherited a Single Select Transitional Account and sold the stocks/closed the account would they need to report anything besides the 1099-B and 1099-Div.? They received approx. $2000 but the 1099-B shows there was an unadjusted loss due to how much the stocks were worth when they inherited it. Thank you.

Not A Product Question

TomK2023

No. Enter the 1099-B and 1099-DIV forms. Be sure o indicate that you inherited this stock (and didn't purchase it).

If you sell it for less than your inherited basis, the result is a capital loss, which you can use as a tax write-off against other investment gains or other income.

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acolaceAuthor

Thank you! Where on TurboTax would you list it as inherited?

MinhT1

In TurboTax, when entering your 1099-B, you will come to a page with the question: Did you buy every investment listed on your 1099-B? Answer No.
On the 1099-R entry page, you will have the question: How did you receive this investment? In the drop down menu, choose I inherited it.

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