I did not receive a 1099 form for the income from the sale of my royalty rights. Am I still required to report it on my taxes?
Thanks.Previoulsy you had said my cost basis was zero since I inherited.howeverI haverecevied information that my cost basis was the value at tyhe timeof inheritance. Can you clarify?hereisthe information i recevied:
sorry for the typo. I hit the reply button before I could edit my answer. Here is the information i received on cost basis: When you inherit stock or other property, your basis is usually the value of the asset on the date of death of the previous owner. Assuming the asset had appreciated since the original owner purchased it, the basis is "stepped up" to current market value, so the income tax on any profit that built up while the previous owner was alive is forgiven. You are responsible only for the tax on appreciation after you inherit the stock. If the stock price falls before you sell it, you can claim a tax loss. If the stock had lost value while owned by your benefactor, your basis is "stepped down" to the date of death value.
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