Inherited Trust and transactions prior to the inherited date

[westmorm]

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? 

[tagteam]

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]

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]

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.