I am using TurboTax Premier. TT wants me to review 1099-B information from my brokerage account about sales of stock I made in 2020. I had inherited certain of those shares sold as my portion of a testamentary trust after my mother died in 2017. TT wants me to indicate whether the shares where purchased or inherited. So two questions [1] Since the basis of the shares was not stepped up upon my mother’s death, what difference does it make whether they were inherited or purchased? Wouldn’t the basis be the same? [2] The 1099-B has two types of long-term gains, one of which represents the initial purchase of the stock; the second that represents subsequent reinvestment of dividends. The shares that were purchased through reinvested dividends occurred both before my mother passed, and subsequent to her passing. In other words, some of those shares would be deemed purchased by the trust and “inherited” by me, and others deemed “purchased” by me individually after the trust assets were distributed. So do I enter “inherited” or “purchased” in the line on TT’s form?
