Vickie-Elfering
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12-07-2019
06:38 AM
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Best Answer Click here
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Level 15
12-07-2019
06:38 AM
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Do you have the 1099B showing the sale?
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Vickie-Elfering
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12-07-2019
06:38 AM
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I do
Level 15
12-07-2019
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IRS will be looking at GROSS proceeds and basis to arrive at net proceeds...so you want to be sure that you have the gross amount entered on the return.
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Level 15
12-07-2019
06:38 AM
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Use Schedule D to report the sale.
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Vickie-Elfering
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12-07-2019
06:38 AM
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On the 1099-B it shows that they reports the Net Proceeds to the IRS, would that mean I have to report the 99,578.32 on the tax return? Thank you for your help by the way!
George4Tacks
Level 15
12-07-2019
06:38 AM
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Yes, you report that whole $99,578.32 as the Net Proceeds on the tax return.
Start here and do some research on the basis of this inherited stock. You can check the box for inherited property with step up in basis (maybe, if the 706 or 8971 was properly filed)
https://www.irs.gov/taxtopics/tc703
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Vickie-Elfering
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12-07-2019
06:38 AM
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Thank you very much for all of your help!
Vickie-Elfering
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12-07-2019
06:38 AM
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So in looking this over I would report the $99,578.32 on the schedule D and then find out what the original price of the stock was in it was inherited? Even through the client physically received $99,578.32. I'm only asking because its about a $10,000 difference in what they would pay when I add the original price of the stock versus when I just have the $99,578.32.
abctax55
Level 15
12-07-2019
06:38 AM
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@Vickie Elfering
You need to do some research/reading about "stepped up basis".
UNLESS "original price of the stock was in it was inherited" is the stepped-up basis.
You need to do some research/reading about "stepped up basis".
UNLESS "original price of the stock was in it was inherited" is the stepped-up basis.
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poolcleaner
Level 9
12-07-2019
06:38 AM
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And if it was inherited from a spouse, be certain to research whether or not it was community property.