1099B for inherited stock

[Earniep]

My wife inherited stock upon mother's death and we sold the stock. The 1099B we received only shows proceeds of sale.  How do we determine cost basis for show loss incurred, and where do we enter it on TurboTax?

[DanaB27]

The basis of property inherited from a decedent is generally one of the following:

• The fair market value (FMV) of the property on the date of the decedent's death (whether or not the executor of the estate files an estate tax return).
• The FMV of the property on the alternate valuation date, but only if the executor of the estate files an estate tax return (Form 706) and elects to use the alternate valuation on that return. (IRS)

Please see Where do I enter a 1099-B? for instructions.

[tagteam]

How was the stock "inherited"? Was it a TOD account, joint account, et al.?

Regardless, your cost basis would be the fair market value on the date of death of your wife's mother, computed as the high plus the low on the date of death divided by two (e.g., 30 high plus 28 low = 58 divided by 2 = 29).

You would enter the sale in TurboTax in the Stocks, Bonds, Mutual Funds, Other subsection of the Investment Income section.

[Earniep]

It was TOD account

[tagteam]

Then just calculate the basis as set forth above and enter the transaction in the program. 

Make sure you indicate that the stock was acquired from a decedent (or inherited), since the holding period is long-term.

[hbl3973]

Earniep,

The website https://www.nasdaq.com/market-activity/quotes/historical  may be useful for you in looking up historical stock prices assuming your mother-in-law's death occurred within the past 10 years.

[Earniep]

I don't see anywhere to indicate it was inherited stock.  

[tagteam]

You should be able to type "inherited" into the date acquired field.

[Mike9241]

for date acquired type in "inherited". no "". this is because the sale of property inherited is long term no matter how long you actually held the property. 

[Earniep]

Thanks for the help.  You answered all my questions.