Reporting taxes on stocks sold after death

Forum|Forum|2 years ago
February 20, 2024
1 reply
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Good morning,

My Dad passed away in Aug 2023. He had 2 brokerage accounts that were divided amongst 4 children. I received 1099-Bs for these 2 accounts and they show the sale of these stock holdings with a sale date months after his passing. When I imported the data in his taxes, it shows that he now owes 10s of thousands in taxes for the sale of these stocks, but all of that should show on the 1099-Bs for the children. Can I just delete the data that was imported for these accounts from Dads TurboTax file?

JulieS

Yes, you can delete the 1099-B from your father's tax return. There shouldn't be income from stock sales after his death included on his final tax return.

If these sales were also reported on 1099-B forms given to his children, the broker should withdraw the 1099-B in your father's name completely.

If the sales aren't shown on the 1099-B forms for the beneficiaries, they should be reported on the estate or trust return. The basis of the stock would be the value on the date of death. Follow this link to learn more about filing an estate or trust return.

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