This post has been closed and is not open for comments or answers.

Where do I claim capital gains from a TOD account?

My dad died with a TOD stock account.  All people on the TOD agreed to sell the stock and the money was distributed accordingly.  The company sent a 1099-B in my dad's SS#.  Can I have the Estate pay the capital gains?  Most of the people have already done their income taxes and sending a Schedule K -1 with distributions would make it very complicated.  The capital gains were < $4000
    The estate has no capital gains. The basis of stock was value at death.  TOD means the new owner (your dad) pays long term gains (if any) on the difference between sale price and value at death.

    On Schedule D, enter "Inherited" for purchase date, value at death for basis.
    • I'm doing my dad's taxes and the estate taxes.  So each person listed on the TOD would enter "inherited" for purchase date and value at death for basis?  And I wouldn't put anything on my dad's taxes and the estate tax?  How come the TOD recipients did not get a 1099-B?  Why was the 1099-B issued in my dad's SS# instead of theirs?  Was that a mistake the investment company made?
    • The person whose name is on the 1099-B (your dad) is obligated to do the reporting. Easiest solution: He pays the LTCG, gets reimbursed by others. Alternative: He files an amended 1040 with a lengthy explanation including name, address, and SSAN of all other recipients, and they all file 1040Xs.