The sale is what is tracked by the IRS. If you are referring to the purchase price of the stock, you will have to do some research if you know purchase dates.
The sale of stock is taxed on the decedent's return for the amount of shares sold before the date of death. Any stock inherited and sold after death would be reported on the tax return of the beneficiary. Likewise dividends are reported the same way.
For the original owner of the stock for sales before death:
- Report the sale of stock with the actual cost the decedent paid for the stock and of course the sales price is listed on the 1099-B with the date of sale. You can search for historical stock prices if you know the approximate dates of purchase of the stock.
- You can use 'Various' as the acquired date if you are not sure.
- Also, the holding period is important to obtain the best tax advantage (one year or less = short term/more than one year = long term).
- Report any dividends received before death on the final tax return of the decedent.
For the beneficiary after the date of death of the decedent:
- Report any sale of stock after death on the beneficiaries return. The cost for the beneficiary is the value of the stock on the date of death of the original owner. The sales price will be listed on the 1099-B. Again you can use 'Various' as the date acquired and use the sales date listed on the 1099-B.
- Report any dividends received after the date of death of the original owner on the beneficiaries return.
Please update if you have additional questions and one of our tax experts will help.
@Bin1b4
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
