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Where to enter the sale of stock received with a zero dollar cost basis in TurboTax
I'm trying to figure out what the tax consequences would be (for 2021 tax year) if my mother sold 300 shares of stock. I'd like to make a copy of her 2020 tax file in TurboTax and see the tax impact but am unsure where to enter this hypothetical sale. The circumstances are...
- My father owned an old life insurance policy in a mutual insurance company. When the company went public in 2001 he was issued 300 shares for owning that policy.
- My father died in 2013 and the stock was put in my mom's name.
- I'm gathering her cost basis is $0 because of the circumstances of how it was obtained. The stock's most recent closing price was $58.68 so it is now worth $17,604.
- If she sold this stock what tax form would she be issued by the company and what figures would be on the form and in what boxes?
She's elderly and just has 2 small pensions and SS and usually has to pay in about $700 each year on federal. The stock yields about $600 in dividends/yr so just trying to figure things out. She could use the money to pay for care.
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March 6, 2021
8:11 AM