Investors & landlords

It does matter for two reasons.  First the holding period for inherited property sales is always long term; and the cost basis is the FMV on the date of death for the portion of the inherited funds.

In order for TurboTax to know the stock is inherited we want to be sure you have all the right selections when you enter these investment sales.  The cost will be the same as the selling price if the sale occurred close to the time you inherited because inherited value on the date of death becomes the cost basis for you. Inherited investment assets are always considered held long term. 

Sign into your TurboTax account, then follow the steps below.

1. Select Wages & Income > Scroll to Stocks, Mutual Funds, Bonds, Other > Review
2. Select Edit beside the inherited stock or select Add more sales
3. Continue to Review your (description of inherited stock) sales > click the pencil to edit this stock sale
4. Now you can follow the screen image provided with the additional details next:
   • When we get to this screen shown above, be sure to select at the top > Long term basis not reported to IRS,
   • Select the check box beside The cost basis is incorrect or missing on my 1099-B
5. On the next screen you can choose None of these apply > Select I don't want to make any changes to my cost basis right now
6. You can choose to get a call from an expert if it pops up, otherwise you can say No thank you
7. Continue through the rest of the screens. 

This should correct any issues and allow you to eliminate the errors.

For the mutual funds that you purchased and then sold, you will enter them as an investment sale that you purchased.

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