capital losses from deceased siblings brokerage ac...
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heessb
Returning Member

capital losses from deceased siblings brokerage account

I inherited a brokerage account from a sibling in 2020.  The sibling purchased 1000 shares of ABC at $30/shr.. At the time of her death the stock value had dropped to $17 and became my basis for cost price.  The current value is back to $30 and I must realize a Capital Gain of $13 per share if I were to sell.  Can a capital loss of $13 a share be taken against my sister's final income tax return.

3 Replies
Bsch4477
Level 15

capital losses from deceased siblings brokerage account

If I understand correctly at the time of the sale the stock was yours by way of inheritance. If so, you are responsible for the gain or loss. 

heessb
Returning Member

capital losses from deceased siblings brokerage account

BSCH4477,

No, its more complicated.  My sister bought the stock(example: 1000 sh ABC) for $30 a share and had it in her brokerage acct.  When she died, the price of the stock had dropped to $17.  The brokerage house then transferred the entire account to me as the beneficiary.  The value of the stock to me was $17.  Since that transfer, the stock has risen back to $30, a capital gain of $13000 if I were to sell it. How can there be a capital gain if the sock was purchased for $30 and later sold for $30.  Should I be able to take a captital loss of $13000 on my sisters 2020 income tax if I have to pay $13000 on my income tax when I sell.   Did that make more clear of more confusing?

Bsch4477
Level 15

capital losses from deceased siblings brokerage account

. The executor of a large estate who files an estate-tax return can choose to set the basis at the value six months after the owner died rather than at the date of death.  So that might help you but you might consult an estate attorney if you want to investigate that course of action.  But, again, if you owned the stock because it was your inheritance and then sold it then there is no longer any connection with your sister’s estate. 

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