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Level 3
July 20, 2024
Question

Inheritance

  • July 20, 2024
  • 2 replies
  • 9 views

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?

    2 replies

    M-MTax
    Level 15
    July 20, 2024

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

    fanfare
    Level 15
    July 20, 2024

    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
    July 21, 2024

    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
    July 21, 2024

    google it

    @roger-vw