1099-b for Estate Tax Return

[JP5912]

Received a 1099-B Proceeds from Broker and Barter Exchange Transactions form in the Estate's name.  Sold stock all on the same date but it lists two transactions, one smaller amount of shares with a date acquired as the date of death with cost or other basis with an amount listed Box 1e and type of gain or loss as long term and checked that basis was reported to IRS Box 12 and the other larger amount of shares with no date acquired listed, no cost or other basis amount listed, type of gain or loss left blank and checked box 5 checked if noncovered security.  I think the date of death should be the date acquired for all of the shares.  Am I right about that ?  Also in figuring the capital gain or loss, I should look at the stock price on the date of death and the stock price on the date sold to determine a gain or loss right ?  Any help would be greatly appreciated.  I purchased TT Business Trust & Estates CD and will start doing the estate return soon.

Thanks

[tagteam · Accepted solution]

For the estate, it would be the date of death and the securities would be stepped up to their fair market value on that date (take the high and low prices for the day, add them together, and divide by two).

[JP5912]

Thanks for the quick reply.  So just to be clear, I would just add the correct information for the date acquired when entering it on Turbo Tax.  Also, would I add Long Term in box 2 and do I need to do anything about box 5 being checked for noncovered security ?

[tagteam]

If you are using TurboTax Business, the program will ask you whether the securities were acquired from the decedent. 

Of course, the holding period is automatically long-term so you would need to make the proper selection if you are not using TurboTax Business. 

[JP5912]

Thanks for all of your help with this.  I really appreciate it.