I received a K-1 with a long term capital gain for an inheritance of a long dead relative. I need to step up the cost basis to the time of my mother's death. How do I do that when the K-1 received from the estate has the long term capital gain box filled with the original value of the inheritance, not the step upped value?
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Research. If what you inherited is publicly-traded stocks, you can look up the value on specific dates. If you inherited property, such as a house, you should be able to find records of comparable homes sold at the time of your mother's death. It depends on exactly what you inherited.
"How do I do that when the K-1 received from the estate has the long term capital gain box filled..."
You don't. The basis was determined at the estate level (at such time that the 1041 for the estate was prepared) so you will have to contact the fiduciary (or whoever prepared the income tax return for the estate).
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