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I know that (usually) the cost basis for a stock/mutual fund is from the date of a person's death.

Correct. Pub 551

In my case there was about a 3 month delay from the death until I sold the funds. Apparently it took about 2 months to transfer the funds into my name.

The 1099-DIV I received only lists the dividend from the time it was transferred into my name although there were two other dividends paid between May 13, 2009 (date of death) and July 24, 2009 (when it was put into my name).

I'm guessing even though it wasn't reported on the 1099-DIV, I'm still responsible for the other 2 dividends received on 1 June 09 and 1 July 09?


Nope. As AJ notes, you're only on the hook for dividends declared while you owned it. As a side note, it sounds like the estate administrator was on the ball. Lots of them don't get around to notifying payors.

I also didn't realize that any sales I make count as long term gains/losses. I would have thought the time frame would have started from when I received/inherited the items.

Your ownership period starts when it's put in your name, but all sales of inherited property are deemed long-term regardless of how long you held the property. Pub 550

Phil
Rule Your Retirement Home Fool
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