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Hi all - Am looking forward to receiving some good advice.

My mom transferred stock from 4-5 companies in Nov. to her brokerage account. She died a few weeks later.

I, as personal rep, am now getting 1099-B forms. The stock was not sold. How do I report these 1099-Bs on her taxes (using Turbo Tax).
The software asks for basis info and date of purchase and all that.

If I record the sale of the stocks now - do I report the sale again when the beneficiaries actually sell the stock?

How does that affect the stepped-up basis?

Thanks,

ML
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My mom transferred stock from 4-5 companies in Nov. to her brokerage account. She died a few weeks later.

I, as personal rep, am now getting 1099-B forms.


My condolences on your loss.

Just moving stock from one place to another wouldn't trigger any tax implications or 1099-B's. Can you elaborate on exactly what she did?

Phil
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She had shares of stock as a result of DRIPs. All she did was transfer (the ownership of?) the stock to the brokerage account (I was at the meeting). The stock now shows up on the brokerage statement.

That is the basis of my question - why am I getting 1099-Bs?

If it was only one company, I would guess it was simply an error, but I have received three from three different companies.

ML
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That is the basis of my question - why am I getting 1099-Bs?

If it was only one company, I would guess it was simply an error, but I have received three from three different companies.


It could still simply be an error - or, well, 3 of them. If I were you, I would contact the companies. Perhaps their records indicate the stock was indeed sold, and then cash given out, and then the stock re-bought in the brokerage account.

Do you have the brokerage account statements? Do they indicate a cash deposit and a stock purchase? Or do they indicate a transfer in of shares?

If its the latter, and if the companies won't correct their 1099s, you may just have to file correctly (i.e. not like the 1099s) and be prepared to offer the IRS some proof (such as a copy of the brokerage statement) when you get a letter about it.
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She had shares of stock as a result of DRIPs. All she did was transfer (the ownership of?) the stock to the brokerage account (I was at the meeting). The stock now shows up on the brokerage statement.

That is the basis of my question - why am I getting 1099-Bs?


Are the 1099-Bs for the total amount of stock transfered or just for fractional shares which the DRP administor sold? Usually brokers will only transfer full shares so the fractional shares will be sold. If they're for the full number of shares, you shouldn't be receiving 1099s and you'll have to contact the DRP administors to find your answer.

Ira
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It was fractional shares!!! Thanks so much!
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