topic Why is Turbo Tax Premier not giving me opportunity to enter box 1b, date acquired, from a 1099-B capital gain from a mutual fund I inherited? in Investors & landlords

Why is Turbo Tax Premier not giving me opportunity to enter box 1b, date acquired, from a 1099-B capital gain from a mutual fund I inherited?

james_adams — Sun, 28 Mar 2021 20:23:24 GMT

Re: Why is Turbo Tax Premier not giving me opportunity to enter box 1b, date acquired, from a 109...

DianeW777 — Mon, 29 Mar 2021 14:10:51 GMT

The sale of inherited property does not require a date acquired because it is always considered as held long term and receive long term capital gain treatment. In other words it is always assumed that it has been owned more than one year. It's simply a special tax rule for inherited property.

Once you select 'I inherited it' for the question 'How did you receive this investment' a date acquired is no longer needed for TurboTax to know how to treat the gain (if any) or loss. Your cost basis will be the fair market value (FMV) on the date of death, (the amount it would have been redeemed or sold for on that date).

To record your sale of inherited mutual funds follow the steps below.

Sign into your TurboTax account, then follow the steps below.

Select Wages & Income > Scroll to Stocks, Mutual Funds, Bonds, Other > Review
Select Edit beside the inherited stock or Add another sale
Continue to Review your (description of inherited stock) sales > click the pencil to edit this stock sale
Continue through the rest of the screens.
See the image below.

Re: Why is Turbo Tax Premier not giving me opportunity to enter box 1b, date acquired, from a 109...

james_adams — Mon, 29 Mar 2021 14:44:08 GMT

This is exactly what I did, and this additional inherited capital gain reduced both my MA resident state refund & my RI nonresident state refund (this didn't seem right) but it did not change my federal refund (which also didn't seem right).

Re: Why is Turbo Tax Premier not giving me opportunity to enter box 1b, date acquired, from a 109...

DianeW777 — Mon, 29 Mar 2021 15:28:27 GMT

My first question would be to ask what you entered as the cost basis for your sale. Depending on how long after death the mutual funds were sold, the cost basis could be very close to the proceeds. In other words if the sale was close in time to the date of death, there should be little to no taxable gain because the proceeds could be equal to the cost basis.

Check your state returns to see if the sale is reported the same as the federal. And if you would like an offline review you can click here.

How do I preview my return before filing in TurboTax Online?