Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 6, 2019 6:08:48 AM

How does turbo tax deal with the date of the stepped up basis for capital gains on inherited stock to be able to treat the gain as a long term capital gain?

0 1 1840
1 Best answer
Level 13
Jun 6, 2019 6:08:49 AM

Enter the sale using the "Stocks, Bonds, Mutual Funds, Other" interview telling TurboTax (I assume) that a 1099-B was received.  Fill out the information called for in the default "Security sale" TurboTax input form that comes up.  When asked when the stock was acquired type in the word "inherited".  TurboTax will place this trade on Form 8949 as a sales category E trade, i.e., long term.

Tom Young

1 Replies
Level 13
Jun 6, 2019 6:08:49 AM

Enter the sale using the "Stocks, Bonds, Mutual Funds, Other" interview telling TurboTax (I assume) that a 1099-B was received.  Fill out the information called for in the default "Security sale" TurboTax input form that comes up.  When asked when the stock was acquired type in the word "inherited".  TurboTax will place this trade on Form 8949 as a sales category E trade, i.e., long term.

Tom Young