Doug522
New Member

Sale of inherited stock reported as short term on 1099-B

I received a 1099-B for the sale of stock that I inherited. On the 1099-B it is reported as a short-term transaction (Box A checked).  Based on when I acquired the stock and sold it that would be correct, but my understanding is that inherited stock should be considered long-term.

 

In TurboTax, if I leave the “Sales section” as “Short-term basis reported to IRS (covered)” (it does say this should match my 1099-B exactly), and select “I inherited it” from “How did you receive this investment?”, TurboTax still seems to be treating this as a short-term holding.  I can change the “Sales section” to long-term and that changes the tax burden.  But then this won’t be consistent with what was reported on my 1099-B.  I had hoped that TurboTax would do the right thing since I indicated that I inherited the stock.

 

What should I do?

 

Thanks in advance!