Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Is there a step-up in basis in stock if the trust is the beneficiary? If so, how do you report it on 1041?

ptrost
Level 2

Trust was the beneficiary of decedent's brokerage account. I believe there should be a step-up in basis. If I'm correct, not sure how to report on 1041 Sch D. If I select "A", it just converts everything to Long-Term which is correct. How should I reflect the step-up in basis on the Sch D, the software does not allow me to put inherited. Should I make the adjustment in the "corrected basis" field to 0 out gain/loss?

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Best Answer

Accepted Solutions
sjrcpa
Level 15

Yes there is a step up. Highly unlikely the sale price exactly equals the date of death inherited value. There most likely should be some gain or loss. Use the date of death as date acquired and force long-term if you can't enter inherited.

The more I know, the more I don't know.

View solution in original post

0 Cheers
1 Comment 1
sjrcpa
Level 15

Yes there is a step up. Highly unlikely the sale price exactly equals the date of death inherited value. There most likely should be some gain or loss. Use the date of death as date acquired and force long-term if you can't enter inherited.

The more I know, the more I don't know.
0 Cheers