Sale of inherited stock not showing as loss (or gain)

[JB9]

Hello,

I inherited stock in 2019. I sold it this year at a total loss of about $4,000 so far (I haven't finished entering). To my surprise, this didn't affect my tax refund. (I had already entered other sales with losses) I would think that anything reflecting a gain or loss on the stepped up value of this stock would be taxable (if gain) or taken as a loss.  I tried making one entry a large gain, and it wasn't taxable either. This just doesn't seem right.  Should I change the criteria from inherited to I  purchased it so that the gains and losses show up?

On my 1099-B, the two items in question show as the basis is not reported to the IRS (Box E is checked). Does not reported make any difference in the refund?

Oh... I just thought of this: Is one possible reason my refund amount didn't change is because I've met the loss threshold for this year and I need to carryover?

Thanks

[Mike9241 · Accepted solution]

you say you entered other gains and losses and then entered these losses. it may be that with the previous entries you reached the maximum capital loss deduction of $3,000 so more losses would not change your tax picture

[JB9]

Thank you--I think that's it. The carryover occurred to me at the last minute... looks like I'll be doing that for a few years! I misunderstood and thought that the carryover came into play in a different way, offsetting income first and affecting the tax until it was zero (if there was enough), and then I carried over. Guess I had that really, really, wrong! Not surprising, as this is the first time I've dealt with this situation.