Skip to main content
Level 3
Jul 20, 2024 11:14 AM UTC
Question

Inheritance

My spouse had stock options only in her name with no right of survivorship.  She died in 2021. I finally received the payment in April 2022. Now the IRS say all the proceeds are part off my income. Why isn't that inheritance?

    8 replies

    M-MTax
    Level 15
    Jul 20, 2024 2:34 PM UTC

    If these are like ISOs.....or similar.....any tax is due when the options are exercised.

    fanfare
    Level 15
    Jul 20, 2024 10:30 PM UTC

    you didn't report it on your tax return with a stepped up basis which would have resulted in no capital gain.

     

    @roger-vw 

    roger-vwAuthor
    Level 3
    Jul 21, 2024 11:17 AM UTC

    I thought it would be inheritance since it belonged solely to her.

    So no I didn't. 

    Not sure what stepped up basis is ?

    fanfare
    Level 15
    Jul 21, 2024 11:56 AM UTC

    google it

    @roger-vw