Hi George, good morning, this is purely a tax question, the estate admin is complete.
When decedent passed she had company stock options. They sat there until 2021 when probate lawyer requested that the options be converted to shares and then moved to beneficiary spouse's account. This occurred in 2021.
A 1099-misc for 2021 was just received with line 3 (other income) filled in with the value of the shares at the spouse's time of passing.
Trying to determine if this amount should be filled in on Line 8 of the 1041 and then taxed (and at what rate or what the rate schedule is).
Basically wondering overall is this a taxable event since the shares were never actually sold but instead only converted to actual shares and moved to spouse's brokerage. Other existing (non stock options i.e., regular investments) shares in other brokerage accounts came over to the spouse but since they are not sold they are just sitting there at a certain cost basis with unrealized (as yet untaxed) gains.
