Reporting of Decedent Capital Gains

Forum|Forum|1 year ago
April 17, 2025
4 replies
55 views

My spouse passed away very late in Dec 2023. He was sole owner of some investment accounts at the time of his death. As a result, for 2024 tax year, there are capital gains in his name and SSN only, just for the short period before these accounts were transferred to his heirs (no probate required). I filed his final tax return and estate tax return for 2023.....but how do I report his capital gains for 2024 since his final/estate returns were already filed? Should I report them on a Schedule D? If I report them in my name/SSN I have no supporting documentation. I did not receive clear guidance when requesting live assistance today. Thank you.

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fanfare

Level 15

when your spouse dies with solely owned carryover losses on their final tax return, those amounts are lost, like tears in rain.

@CW62

fanfare

Level 15

IRS Pub 559 --

"If the decedent accounted for income under the cash method, only those items actually or constructively received before death are included on the final return.

Income in Respect of a Decedent

All income the decedent would have received had death not occurred that was not properly includible on the final return, discussed earlier, is income in respect of a decedent.

How To Report

Income in respect of a decedent must be included in the income of one of the following.

The decedent's estate, if the estate receives it.
The beneficiary, if the right to income is passed directly to the beneficiary and the beneficiary receives it.
Any person to whom the estate properly distributes the right to receive it."

@CW62

CW62Author

Level 2

Grateful for your assistance. Thank you!

mark1263

Level 2

Sorry for your loss.

we eventually hired an accountant to deal with the issue of my dad's post-death and post-tax filing income. Unfortunately, I don't recall the specifics.

good luck