topic 1099B for inherited stock in Investors & landlords

1099B for inherited stock

Earniep — Mon, 23 Feb 2026 12:42:06 GMT

My wife inherited stock upon mother's death and we sold the stock. The 1099B we received only shows proceeds of sale. How do we determine cost basis for show loss incurred, and where do we enter it on TurboTax?

Re: 1099B for inherited stock

DanaB27 — Sun, 12 Feb 2023 21:38:04 GMT

The basis of property inherited from a decedent is generally one of the following:

The fair market value (FMV) of the property on the date of the decedent's death (whether or not the executor of the estate files an estate tax return).
The FMV of the property on the alternate valuation date, but only if the executor of the estate files an estate tax return (Form 706) and elects to use the alternate valuation on that return. (IRS)

Please see Where do I enter a 1099-B? for instructions.

Re: 1099B for inherited stock

Anonymous_ — Sun, 12 Feb 2023 21:39:46 GMT

How was the stock "inherited"? Was it a TOD account, joint account, et al.?

Regardless, your cost basis would be the fair market value on the date of death of your wife's mother, computed as the high plus the low on the date of death divided by two (e.g., 30 high plus 28 low = 58 divided by 2 = 29).

You would enter the sale in TurboTax in the Stocks, Bonds, Mutual Funds, Other subsection of the Investment Income section.

Re: 1099B for inherited stock

Earniep — Sun, 12 Feb 2023 22:42:16 GMT

It was TOD account

Re: 1099B for inherited stock

Anonymous_ — Sun, 12 Feb 2023 23:35:06 GMT

Then just calculate the basis as set forth above and enter the transaction in the program.

Make sure you indicate that the stock was acquired from a decedent (or inherited), since the holding period is long-term.

Re: 1099B for inherited stock

hbl3973 — Mon, 13 Feb 2023 01:04:47 GMT

Earniep,

The website https://www.nasdaq.com/market-activity/quotes/historical may be useful for you in looking up historical stock prices assuming your mother-in-law's death occurred within the past 10 years.

Re: 1099B for inherited stock

Earniep — Mon, 13 Feb 2023 01:30:47 GMT

I don't see anywhere to indicate it was inherited stock.

Re: 1099B for inherited stock

Anonymous_ — Mon, 13 Feb 2023 03:39:46 GMT

You should be able to type "inherited" into the date acquired field.

Re: 1099B for inherited stock

Mike9241 — Mon, 13 Feb 2023 05:35:17 GMT

for date acquired type in "inherited". no "". this is because the sale of property inherited is long term no matter how long you actually held the property.

Re: 1099B for inherited stock

Earniep — Wed, 15 Feb 2023 13:29:27 GMT

Thanks for the help. You answered all my questions.