Yes, you will claim the sale of the inherited stock on your tax return. They are treated as a sale of investment property and reported on Schedule D. The amount of gain (or loss) depends on two things:
- The value of the stock on the date of death of your uncle, which will be considered your cost of the stock as if you had paid that amount for the stock.
- The selling price on the date of sale.
The difference in these two figures will determine whether you have a gain or a loss. A gain will be added to your other taxable income, or a loss will reduce your other taxable income.
- This link will provide more information about capital gain or loss: IRS Tax Topic 409
In TurboTax you can follow these steps to enter the sale (click the link for more information):
- Open or continue your return.
- Navigate to the investment sales section:
- TurboTax Online/Mobile: Go to investment sales.
- TurboTax Desktop: Search for investment sales and then select the Jump to link.
- Answer Yes to the question Did you have investment income in 2024?
- If you land on the Your investments and savings screen, select Add investments.
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