topic Form 8949, Column "f" - Step up basis on Death of Spouse in Investors & landlords

Form 8949, Column "f" - Step up basis on Death of Spouse

Roninroundrock — Thu, 27 Aug 2020 17:51:04 GMT

For the sale of stocks jointly owned with spouse - regarding the Column "f" adjustment column on the Form 8949 - I can not find a code for "adjustment due to death of spouse" - i.e. the step up basis allowed due to death of one's spouse (the closest seems to be code "O" for other).

Anybody know what code you should use there?

ron, now in shawnee

Re: Form 8949, Column "f" - Step up basis on Death of Spouse

rjs — Thu, 27 Aug 2020 18:13:50 GMT

Did the broker report the basis to the IRS? The 1099-B or equivalent brokerage statement tells you. If the basis was not reported to the IRS, you don't use any adjustment code at all. Just enter the correct basis, including the step-up. There is no adjustment. If the basis was reported to the IRS, use code B, for incorrect basis on the 1099-B.

Re: Form 8949, Column "f" - Step up basis on Death of Spouse

roninshawneeKS — Thu, 27 Aug 2020 21:55:53 GMT

OK, thanks.

Yes, the broker (several) did report the basis to the IRS - or at least I think so (going through the 1099-B's right now). I used TurboTax and just used the Brokers down-loaded value which contained the basis for the stosk sale - and compared them to my Quicken report and everything lined up.

However (didn't go into the details in the orig. post), I lost my wife in 2017 and forgot about adjusting the basis on the stocks jointly held at the time and have sold some of them in 2017, 2018, 2019 and still have several left (and of course all of those returns have been filed). I am planning to Amend those returns (with Turbotax, I still have the various year's software) and was just trying to make this as painless as possible by explaining what was going on (by using the right code).

Do you happen to know if Turbotax has any way I can attach an explanation of why I am filing an Amended return in the e-filed Amended return itself. May get a letter no matter what I do, but was hoping an explanation with the Amended return would help.

ron, now in shawnee

Re: Form 8949, Column "f" - Step up basis on Death of Spouse

rjs — Thu, 27 Aug 2020 22:13:19 GMT

An amended return always includes an explanation of the changes. After you make the changes, TurboTax will prompt you to enter an explanation. Keep it brief. Just say something like "Form 8949 - corrected basis for stock. Stepped up basis for half of stock due to death of joint owner." If you have several sales, and only some have corrected basis, identify the specific stocks for which you corrected the basis.

Re: Form 8949, Column "f" - Step up basis on Death of Spouse

roninshawneeKS — Fri, 28 Aug 2020 20:05:00 GMT

rjs-

Thanks for the help - didn't realize the Amended return had this feature, capability.

And also thanks for the tip - this make me feel better about a positive outcome.

Really appreciate the help.

ron, now in shawnee