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JKCPA
JKCPA, CPA
Category: Tax
Satisfied Customers: 5884
Experience:  CPA with tax experience.
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My father was the sole owner of his investment acct (regular,

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My father was the sole owner of his investment acct (regular, not IRA, 401K, etc), with me listed as beneficiary to receive upon his death. He died this year, and the account has transferred to me. There is no probate & I am the sole survivor of our family. This account is under 100K, and is pretty much the sum total of his estate. How will this be reported on our (husband & me) taxes?

Hello Customer,

 

Thanks for your question.

 

My condolences on the loss of your father. The inheritance itself would not need to be reported on your income tax. Also, there is no estate or inheritance tax involved on this amount.

 

When you inherit a regular brokerage account, your basis of any securities (stocks, bonds, mutual funds, etc.) in the account would be their value at the date of death. So when you sell the securities, you would have to figure out if you had a taxable gain or loss by subtracting this basis from your sales proceeds. The gain or loss would be a long-term capital gain or loss. You should receive a 1099-B after the end of the tax year in which you sell securities. If there is any interest or dividends earned after the date of death to be included with your tax return, you should receive a 1099 for these amounts also.

 

Best regards,

 

 

 



Edited by JK_CPA on 11/2/2010 at 6:09 PM EST
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