I was exec. of my father's estate. The estate was closed. More money was found. I distributed it on my own. Results in a cap gains chg. to me on $16k Can I count as loss?

[kinzie40]

"I was filling out my taxes and entered an 8949, which reported a distribution I recieved after my father's estate was closed. At the time, instead of reopening the estate, I distributed the proceeds to myself and my fellow heirs on my own (Well documented). Now I see, according to the Turbo Tax program, that the money(capital gains) generated from the time of my parent’s death to the time the funds were distributed is added to my countable income. This same countable income is then is carried over to my Indiana State Tax return. Does anybody know how I can lessen the tax bite here? "

If I could go back in time, I would have figured the capital gains and removed the taxable amount from each of the distributions. Short of that, can I take a "loss" anywhere? Somebody said Schedule C, but that's for business. I am a individual.

[fanfare · Accepted solution]

your cost basis is the value on the date of death.

Since the market is up, if you sold those assets recently you likely would have a capital gain.

Inherited assets are always treated as Long Term. click the button for "Inherited asset".