topic Question on inherited stocks cost basis in Get your taxes done using TurboTax

Question on inherited stocks cost basis

kurchian — Tue, 24 Feb 2026 07:14:29 GMT

My wife and I recently inherited some stocks. We are interested in selling some of them.

The date of death was 12/26/22. When the stocks were transferred to our broker the cost basis date became 12/26/22. The broker, therefore, currently shows this as short term.

It is my understanding that inherited stocks automatically are considered long term, regardless of how long we hold them. So I am reluctant to sell them because I’m concerned that the 2023 1099 that my broker will issue will tell the IRS that the gains/losses are short term. And, of course, it is to my advantage to show these as long term, not short term

I would appreciate any advice that readers could share.

Re: Question on inherited stocks cost basis

Anonymous_ — Thu, 28 Sep 2023 17:12:28 GMT

Your scenario will not present an issue when you enter it in TurboTax, provided you check the box shown in the screenshot below.

Re: Question on inherited stocks cost basis

NCperson — Thu, 28 Sep 2023 21:42:55 GMT

@kurchian I have seen brokerage account statements that are smart enough to reflect these inherited sales under the long term gain category automatically. It is well known in the tax and brokerage circles that inherited shares get the cost basis of the date of death and are automatically categorized as long term gains, regardless of the holding period.

Re: Question on inherited stocks cost basis

fanfare — Thu, 28 Sep 2023 21:47:22 GMT

It is the Box Category you select that controls, not the Date Acquired.

Use Form 8949 Page 2.

You can put "(Inherited)" in descriptions

@kurchian