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Level 2
posted Feb 19, 2023 8:24:53 AM

I sold stock shares from an inheritance at the value inherited, ie no gain. I received 1099B, do they need to be reported since inherited? If so, how?

0 4 1216
4 Replies
Level 8
Feb 19, 2023 8:29:36 AM

Absolutely, the IRS gets a copy and without you reporting the circumstances, all they see is the gain.

 

Here is information on where to enter the sale of stock:

 

To enter an investment sale from a brokerage account (1099-B), follow the steps below.

  • Click on Federal Taxes 
  • Click on Wages and Income
  • Click on I'll choose what I work on
  • Under Investment Income
  • On Stocks, Mutual Funds, Bonds, Other, click the start or update button

When asked how you got the stock, there is a place to indicate that it was inherited.

 

 

Level 15
Feb 19, 2023 9:52:08 AM

it's under investment income - sale of stocks.  for date acquired type inherited.  failure to report the sale and tax basis and the IRS assumes your  tax basis is zero which results in a bill. then you have to file an amended return or respond as directed in the iRS notice

Level 2
Feb 20, 2023 1:57:30 PM

Thank you for this response, very thorough and easy steps to follow...I am now awaiting the ability to amned my 2022 already submitted return.

Level 2
Feb 22, 2023 1:22:57 PM

Thank you for this response, very thorough and easy steps to follow...I am now awaiting the ability to amend my 2022 already submitted return.