in essence, you have correctly reported the cost basis and realized gain. The Trust as the owner did inherit the shares on the date of death and at the cost based on the average of the closing price on the date of death and the closing price the next day. Inherited assets are always considered as Long-Term holding no matter what the actual period is.
If the Trust was the entity which executed the sale, a Form 1041 must be filed reporting the sale and capital gain, or loss. The Form 1041 would normally generate Schedules K-1 to report to the beneficiaries the proceeds transferred to them, and if the Trust paid the capital gains tax, the proceeds are transferred with no tax liability.
If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67
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USAR 64-67 AIS/ASA MOS 9301 - O3
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