The proceeds were reported as the face value of the CD and the cost basis was reported as the FMV, I assume, on the date of death. As mentioned earlier, the CD was held to maturity, and I contend there should be no gain. I was not able to obtain the calculation of the cost basis on the 1099-B from the brokerage firm which held the CD after it transferred to me. The brokerage firm just said the reported gain was due to the difference between the CD face value and the cost basis on the date of death.
