Imported 1099-B transactions, but now can't edit for ones inherited.

[shellbhawaii]

Using the desktop version on my MacBook Pro, I downloaded the stock sales and got to where it asks if I purchased the stocks or if they were inherited. I was going through that, but somehow clicked out of it, and now I can't get back to where I would address this. How are those transactions treated? Can I go directly to form 8949 and designate the ones that were inherited? What happens if I don't designate that? They have the cost basis entered as of the date of my mom's death. What other information would need to be noted?

[Mike9241]

sorry for your loss. how long after death were they sold?  if more than 1 year it won't matter because they'll get long-term treatment.  However, under the tax laws, the tax basis is the value on the date of death. If sold short of the 1-year + holding period then in the date acquired box type inherited.  to get back go to the investment section in Turbotax. in the wages in income section

[shellbhawaii]

So, I'm on the desktop version on a Mac, and I don't think you meant to go to "wages" in the income section. The stocks were imported from my brokerage and are under Investment Income. When I click on the Update button, it lists the two accounts and when I go in to the one I need to "update/edit" to reflect which ones were inherited, I get a list of list of the stocks sold but no way to edit them. If I click on FORMS to go to the actual form, they are of course there. 

The "date acquired" shows as 2/4/23, which was the day my mom died, and thus the new date for cost basis. But are you telling me that, if we sold them within 2023 (which we did) I just override that entered date with "Inherited"? How does that work with determining the cost basis?

[Pip_12_mn]

Maybe I'm missiing something but if your brokerage form shows the cost basis on the date of death, you already have the correct basis and dont even need to answer that they were inherited. Someone else should confirm this but my understanding is the whole point of the inherited shares is you determine the cost basis on the date of death which might result in a step up or step down with respect to when the original owner purchased the shares.

[shellbhawaii]

Well, that would be great if that's the case. I'll thank my broker for the thorough reporting!

[RobertB4444]

If your broker has already entered the date of death as the date of purchase and changed the purchase value to the fair market value on that date then, as @Pip_12_mn says above, you are all set.

The only other piece of information you should have is the date of sale.  If it is more than a year later then the tax on the profit is long term capital gains.  So if you sell any in 2024 after February 4th you will have a lower tax rate on the sale.

@shellbhawaii 

[Divers97]

This is very helpful. My situation is similar, and the brokerage had clearly noted the cost basis, dates acquired, and long term basis on the 1099-B. TurboTax still asked whether some were inherited or purchased, which is sounds like is a moot point if the believe brokerage noted this on their 1099. Thanks for the clarification, as it seems like the form doesn't change online regardless of checking the inherited or purchased box as long as the details are correct.