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My mother passed away last year and I was left a

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Hi, My mother passed...

Hi, My mother passed away last year and I was left a considerable inheritance in the form of a trust most of which was tied up in various mutual funds, bonds, stocks etc. For reasons that I wont go into I had the institution in charge of the trust liquidate these assets and took my distribution in cash. Do I still use the step of process for my cost basis when figuring out how much I owe in capital gains or do I use the long term amount that is listed on my 1k form which would be considerably more?

Submitted: 1 month ago.Category: Tax
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3/8/2018
Tax Professional: Richard, Tax Attorney replied 1 month ago
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 56,573
Experience: 29 years of experience as a tax, real estate, and business attorney.
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Hi! My name is Richard & I will be helping you today! It will take me a few minutes to type a response to your question. Thanks for your patience!

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Tax Professional: Richard, Tax Attorney replied 1 month ago

Good afternoon. Was this a revocable living trust that became irrevocable upon your mother's death? If not, was this a trust set up in the will itself? Thanks.

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Customer reply replied 1 month ago
Give my a minute to get you an answer on that
Tax Professional: Richard, Tax Attorney replied 1 month ago

No worries...take your time.

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Customer reply replied 1 month ago
It is actually easier for me to type from where I work
Tax Professional: Richard, Tax Attorney replied 1 month ago

Not a problem. JustAnswer generates these phone call requests without input from experts. We have no control. We should easily be able to resolve this without the call. :)

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Customer reply replied 1 month ago
Sorry I should know this but I don't am just sifting through some emails to figure it out.
Tax Professional: Richard, Tax Attorney replied 1 month ago

Not a problem at all. :) I'll be here.

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Customer reply replied 1 month ago
Revocable living trust I believe. It was set up by my grandfather some years ago and it was not part of my mothers will as she did not have one.
Tax Professional: Richard, Tax Attorney replied 1 month ago

Thank you. In that case, all the assets would have been entitled to a basis adjustment to their fair market value as of the date of death. So, you would only have gain to the extent the assets appreciated after death. If no appreciation, there would be no gain and thus no tax on the sale.

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Tax Professional: Richard, Tax Attorney replied 1 month ago

Just following up. My screen indicates that you have not reviewed my response. Please let me know if you did not receive it so I can re-send it if necessary. Thank you!

If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as Good or Excellent (i.e., 4 or 5 stars)(hopefully Excellent/5 stars!). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!

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