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westmorm
Returning Member

Inherited Trust and transactions prior to the inherited date

How do I handle 1099-B transactions prior to the inherited date of a trust? Transaction in 6/2020; inherited date 7/2020. Should these types of transaction go on the decreased taxes? 

3 Replies
tagteam
Level 15

Inherited Trust and transactions prior to the inherited date

Are these security transactions?

 

If so, then those transactions that were settled prior to death should be reported on the decedent's income tax return.

westmorm
Returning Member

Inherited Trust and transactions prior to the inherited date

Yes these are security transactions but instead of being reported on the deceased 1099 all the transactions are rolled into the 1099 received by the inherited trust. 

 

 

tagteam
Level 15

Inherited Trust and transactions prior to the inherited date

You have to separate those transactions that preceded death and those post-mortem (after death when the trust became irrevocable). 

 

The trust will report the sales it made on its Form 1041.

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