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?

[bthe]

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?

[CarolynM · Accepted solution]

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

[fanfare]

 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.