Inherited 1099-B

Forum|Forum|5 years ago
January 26, 2021
8 replies
53 views

I inherited two different investment vehicles from my mother when she passed. I closed both and took cash payouts (<$3k total). I have both 1099-B documents stating the amounts of the sales with very few other boxes filled in. I am unable to get the information I enter to pass the TurboTax check. Help!

TurboTax Basic Windows

ColeenD3

Level 15

Did you say "Inherited" when asked about how you received them? You may be able to avoid some of those questions.

jkmontana20Author

Level 2

I don't see the same screen you see, nor the same questions being asked. Is this from an updated version of TT?

ColeenD3

Level 15

You will be asked was it a stock.
Which bank or brokerage sent you a 1099-B for these sales?
Do these sales include any employee stock? Etc.

Then you will encounter, "Did you purchase all of these investments? Any inherited or gifted investments are not considered purchased. Answer "no"

user17761201940

Level 2

Hello ColleenD3,

In TurboTax desktop, I incorrectly answered the question "Did you purchase all of these investments? Any inherited or gifted investments are not considered purchased. " How do I return to that question after I've already answered it so that I can change it?

DianeW777

Level 15

Follow the instructions below (and above) to reach the location to change your inherited or gifted investment sales.

Sign into your TurboTax account, then follow the steps below.

Select Wages & Income > Scroll to Stocks, Mutual Funds, Bonds, Other > Review
Select Edit beside the inherited stock or the gifted investment
Continue to Review your (description of inherited stock) sales > Edit
This should take you to the investments you need to change and allow you to make the necessary changes.

Below is additional information for inherited investments. Gifts cost basis is the same as the giver plus any gift tax paid if applicable, but see some additional information about gift basis.

Gain Basis: If you sell the gift for a gain, your basis is the same as the donor's adjusted basis just before the gift.
Loss Basis: If the FMV at the time of the gift is less than the donor's basis, your basis for calculating a loss is the FMV. If you sell for a price between the FMV and the donor’s basis, you recognize neither gain nor loss.

Your cost basis is the fair market value on the date of death of the decedent, plus the capital improvements (not repairs but improvements that are capital in nature). The expenses of sale will reduce any gain or increase any loss as well. This is entered as the sale of investment property and can be entered as follows.

Enter the inherited property sale in TurboTax using the steps provided.

Open or continue your return: Choose the Search box and type 'sale of second home' then use the Jump to link to enter your inherited sale) or follow the menu. In TurboTax Online select 'See more' in the FAQ then click 'sold second home'.
Under Wages & Income scroll to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2025? screen
- If you land on the Your investment sales summary screen, select Add More Sales
On the OK, let's start with one investment type screen, select Other, then Continue
On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale
On the next screen, select Other (choose this also for inherited homes) then select I inherited it under How did you receive this investment? (For TurboTax Desktop you can enter a description of 'Inherited Home' and long term holding period).