1099-B statements do not reflect basis stepp up to the values at the time of death. How do I file my mother's tax return this year and avoid the gains on the account?

My mother's cost basis was to be updated to the values at the time of her dearth in August of 2017. However, the 1099-B reports that I received ignore this. How do I use the stepped up basis to the values at time of death to avoid taxable gains on her taxes for 2017. Do I ask for restated 1099-B's of can I reflect this in Turbotax?

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1 Best answer

Level 1

Jun 6, 2019 10:07:04 AM

No, you can manually adjust the cost basis to reflect the stepped up basis.

There are many reasons the basis on a 1099-B can be wrong, so altering is not a red flag to the IRS.

If you are unsure of the cost basis at the time of her death, follow this link to find historical stock values:

Historical Stock Prices

Level 1

Jun 6, 2019 10:07:04 AM

No, you can manually adjust the cost basis to reflect the stepped up basis.

There are many reasons the basis on a 1099-B can be wrong, so altering is not a red flag to the IRS.

If you are unsure of the cost basis at the time of her death, follow this link to find historical stock values:

Historical Stock Prices

Level 15

Jun 6, 2019 10:07:07 AM

any 1099-B transaction in her account must have occurred while she was alive. she does not get a stepped up basis by dying.

YOU get a stepped up basis if you inherit the securities and sell them.

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1099-B statements do not reflect basis stepp up to the values at the time of death. How do I file my mother's tax return this year and avoid the gains on the account?