topic Selling an inherited mutual fund - short term or long term? in Get your taxes done using TurboTax

Selling an inherited mutual fund - short term or long term?

DX-hound — Mon, 03 Feb 2020 13:29:10 GMT

I inherited a Vanguard mutual fund in Nov 2013. In 2019 I had to sell the fund as it was being closed and liquidated. The 1099-B I received breaks the sale down into three portions, a short term sale (Checkbox A on the 8949), a long term (check box D) and a another long term (check box E). All three show a losses.

My question: In the 1099-B section of TurboTax Premier for investment sales, if you click on "I'll add additional info on my own" a window comes up that has a box "This item was inherited" with an explanation "Sales of inherited items are always treated as long-term sales." So should I click this box or not since the 1099-B I received does show some short-term activity? Perhaps it makes no difference since the 1099 shows losses for both short term and long term?

Thanks

Re: Selling an inherited mutual fund - short term or long term?

Irene2805 — Mon, 03 Feb 2020 13:47:56 GMT

Yes - Check the box that the item was "inherited," since the fund itself was inherited. There may have been some items within the fund with short-term sales, but that doesn't change the overall nature of the inheritance.

Re: Selling an inherited mutual fund - short term or long term?

DX-hound — Tue, 11 Feb 2020 00:24:57 GMT

Thanks. Very helpful.

Re: Selling an inherited mutual fund - short term or long term?

rcacchio — Wed, 18 Mar 2020 01:16:27 GMT

My mom passed in January of 2019. We were co owners of a mutual fund account (BlackRock)

I can not seem to find the box that says "inherited"

I filled in all sales separately because i sold some funds on 6 separate occasions in 2019.

I am correct checking off long term? My mom had this fund for over 10 years.

Please help!

Re: Selling an inherited mutual fund - short term or long term?

DaveF1006 — Wed, 18 Mar 2020 01:41:04 GMT

For inherited investments, all gains are treated as long term capital gains for tax purposes, no matter how long you actually owned the shares.