@sbpilates wrote:
As I stated. he did make a good sized gain in 2021 that he then rolled in to Crypto and lost in 2022. Right now my concern is the Gain he made in 2021. His only other source of income was SS and i think that was under the 25K. Thus the Question How do i move forward since he has no IRS records that they can find. the last 3 years of Transcripts simply came back as nothing on file. And that shoudl have been for his Income and Taxes paid or due.
Well, you are only responsible for 2022, as far as I know.
If you know the name of the broker, you can ask them for a copy of his 2021 account statements and 1099-B form. I have no idea why the form might not be in the transcript.
And as mentioned, depending on what stocks he inherited and when he inherited them, he might not actually have any gain at all, or any taxable gain. For example, suppose he inherited stock on Feb 1, 2021 that had a fair market value at the time of $100,000. If he sold on Feb 2, 2022 for $100,001, he would have a $1 gain even though he made $100,000. If he sold it in June for $90,000 due to the decline in the market, he would have a $10,000 loss, even though he realized $90,000 of new cash in his pocket. (If he purchased the stocks himself many year ago, he would probably have a gain, but if he inherited them, he may have had no gain or even a loss.)
