gain or loss on inherited stock should be long-term. however, if there is a dividend reinvestment program dividends paid after the date of death and reinvested in the stock get long or short-term treatment depending on date acquired and date sold. So the question is why did the brokerage indicate this as short-term.
for shares held on the date of death, inherited used as the date acquired will result in long-term treatment
if that short-term item is really long-term, code T is correct because it tells the IRS the reported type was wrong.
This answer has been verified for accuracy by an Intuit expert employee
