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
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
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.