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Level 2
posted Mar 1, 2021 6:13:37 PM

Cost basis for inherited municipal bonds

A few municipal bonds I inherited either matured or were called in 2020. The cost basis reported on my monthly brokerage statements (which shows the purchase date as the date of my father's death) reflect a different basis each month. On the 1099-B, the brokerage lists the cost basis at redemption value, but I read that I should adjust the cost basis to the basis at time of death. Should I use the cost basis as shown when first transferred to my account or the cost basis reflected on the 1099-B? Thank you. 

0 2 1287
2 Replies
Level 15
Mar 1, 2021 6:18:36 PM

The broker's statement is correct ... ask the broker to explain why. 

Level 2
Mar 3, 2021 2:44:12 PM

Thank you.