I will be reporting the sales of long term held stock that my mother had inherited. I've determined the value of the stock on the day of decedent's death which will be the cost basis. My broker says to supply the date of death (inherited date) for the Date Acquired which will be on their generated the 1099-B. But I've also seen mentioned here that "inherited" or "various" could be used on the Form 8949. Which is correct?
Also, after inheritance some of the companies spun-off subsidiaries through which she was issued stock. The original cost basis was then split among the original company and the new spun-off company. Is the Date Acquired for the spun-off company still the inherited date or is it the date of spin-off?
use inherited. and yes the date acquired for the spin offs is inherited. except in the case of a taxable spin off.
from IRS 8949 instructions
Inherited property. Generally, if you disposed of property that you acquired by inheritance, report the sale or exchange
on a Part II with the appropriate box checked (D, E, or F). Enter “INHERITED” in column (b).
use inherited. and yes the date acquired for the spin offs is inherited. except in the case of a taxable spin off.
from IRS 8949 instructions
Inherited property. Generally, if you disposed of property that you acquired by inheritance, report the sale or exchange
on a Part II with the appropriate box checked (D, E, or F). Enter “INHERITED” in column (b).
...in the Turbotax software , when you enter the stock sale data, the word "Inherited" can be entered in the "Date of Acquisition" field without any problem (as long as you spell it right). It's one of the few text entries allowed in that date field .
Your second question....I don't know enough about those situations.
However, when the word "Inherited" is carried into a cpaital gains report in a state tax program where a state does have such taxes, the states do want a true date.