estate question

[lovesledz]

I am filing a final return for a deceased taxpayer; his two daughters are the executors. There are two forms 1099-B; one lists 4 sales with an acquisition date that is the date of death, the other has no basis information at all. When I asked for basis information from the broker that sent the 1099-B with no basis data, they provided the date of death value. I know that inherited property gets a stepped up basis on the date of death, but it is the deceased taxpayer's social on the 1099, not the daughters who will inherit the securities. My question is, should these sales be reported on the deceased's final return, and if so, should they be reported with a stepped up basis with "inherited" as the date of acquisition? Obviously, I have had no experience with estate issues and don't know where to find the answer. Any input would be greatly appreciated.

[Barb132130]

Were the sales made prior to DOD?

It depends on when the securities were sold. If before the DOD, it would go on the final 1040, using the deceased's basis. If after DOD, the sales should be reported on a 1041, using the inherited DOD value.

[lovesledz]

It depends on when the securities were sold. If before the DOD, it would go on the final 1040, using the deceased's basis. If after DOD, the sales should be reported on a 1041, using the inherited DOD value.

The sales were after the date of death. The broker statements are addressed to the deceased, with the names of the executors.

[Burke]

The sales go on the Form 1041, if there is one, otherwise split between the heirs if the account was transferred to them. This happens all the time. You can enter on the deceased's 1040, Sche D, and "nominee" it out to the appropriate return. It has the deceased's SSN on it because they did not provide the broker with the estate EIN or their SSN's. And it gets stepped-up basis as of DOD.

[lovesledz]

Thank you

Thanks to all for the input, I appreciate the help. As it turns out I believe that those 1099's were included in the estate and never should have been included with the documents given to me to prepare the decedents final return. Unfortunately it took a lot of digging for me to get that out of the executor.

[Burke]

Since they were issued with the deceased's SSN, that is where the IRS will look for them. I would still go the "nominee" route on Sche D.

[DMICPA]

holding period

Don't forget, all long term holding period