You inherited the 3M stock and cost basis of the 3M stock is explained as follows. Per IRS Publication 551 (page 15), the basis of property inherited from a decedent is generally one of the following.
- The fair market value of the property at the date of the individual's death.
- The fair market value on the alternate valuation date if the personal representative for the estate chooses to use alternate valuation.
- The value under the special-use valuation method for real property used in farming or a closely held business if chosen for estate tax purposes.
- The decedent's adjusted basis in land to the extent of the value excluded from the decedent's taxable estate as a qualified conservation easement.
Since the Solventum stock was spun-off and not inherited, Something else or I purchased it may be the best choices for the question How did you receive this investment?
If you paid $100 for four shares of 3M, your cost basis in 3M is $100.
After the spin-off, you have four shares of 3M and one share of Solventum and your cost basis is still $100. The cost allocation would be four shares of 3M $80 and the one share of Solventum would be $20.
- At the screen Look for your sales on your 1099-B, select Continue.
- Enter the information. Select The cost basis is incorrect or missing on my 1099-B. Continue.
- At the screen We noticed there's an issue with your cost basis, select I know my cost basis and need to make an adjustment. Continue.
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