stepped-up basis / married couple/one deceased

[Greta]

Stock sold by widow. It was originally jointly held. Does she get a stepped-up basis for her deceased husband's half?

[IRonMaN · Accepted solution]

Yup

[Greta]

Just got off the phone with widow's broker. Their statement to IRS gave her a *short-term* 7K gain without a stepped-up basis. He said widow does not get her husband's half of step-up. Shall I use the adjustment box on Sch D? But how to move it to long-term?

[MICHAELMARS]

Are you sure it was a joint account and not just hers?

[IRonMaN]

Use the adjustment box to correct for the cost.  If it was a joint account and the sale was a short term gain, her half wouldn't be LT. 

[sjrcpa]

Inherited property gets a long-term holding period, even if you sell it the day after you inherited it.

I'd get a statement of the assets in the account and their values as of the date of death. Broker can provide.

I would not rely on the broker's statement about getting a step up or not.

[Greta]

Both widow's half and the inherited half are long term. But report to IRS was all short term. I will perhaps enter on Sch D as reported, then undo it, then enter it correctly on long term in two parts, having looked up on Big Charts the cost basis on date of his death; and find out when they bought the stock originally.