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Is a stock received from a trust considered inheritance, a gift, or something else?

Forum|Forum|4 years ago
April 11, 2022
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I received a stock as a part of a trust and recently sold that stock. Turbotax is asking how I received this investment.

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Best answer by Anonymous_

Did you receive a tax reporting statement (such as a K-1)?

Generally, corpus (aka principal or assets) of a trust that are distributed are not taxable to the beneficiary; only income and gain subject the beneficiary to income tax liability.

Although there should be no immediate income tax consequences, you do need to know your basis in the stock for an eventual sale. The trustee should have that information.

A

Anonymous_Answer

Employee

Did you receive a tax reporting statement (such as a K-1)?

Generally, corpus (aka principal or assets) of a trust that are distributed are not taxable to the beneficiary; only income and gain subject the beneficiary to income tax liability.

Although there should be no immediate income tax consequences, you do need to know your basis in the stock for an eventual sale. The trustee should have that information.