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Level 1

1099-B for deceased tax payer

My aunt passed away in September - I sold her stocks after she died but the 1099-B came as part of a consolidated 1099 from TD Ameritrade and was reported under her SS#. I do have an EIN and all the sales occurred after her death.  Do I just not report any of the stock sales on her 1040 since there were no sales while she was alive and just send an explanation?  I plan to report all the sales on the 1041 using date of death value as the cost basis for shares.

 

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Level 1

1099-B for deceased tax payer

You do not include the transactions that occurred after her death on her tax return.  Reporting them on the 1041 using the step up in basis is the proper way to handle the transactions.  If you want to e-file your aunt's return, you can report summary totals for any transactions that need to be reported, and then send your statement along with Form 8453 and copies of the 1099-B.  That way you want have to print and mail the entire return.

1 Reply
Level 1

1099-B for deceased tax payer

You do not include the transactions that occurred after her death on her tax return.  Reporting them on the 1041 using the step up in basis is the proper way to handle the transactions.  If you want to e-file your aunt's return, you can report summary totals for any transactions that need to be reported, and then send your statement along with Form 8453 and copies of the 1099-B.  That way you want have to print and mail the entire return.