WITAXLADY Posted September 30, 2019 Report Share Posted September 30, 2019 Client dies Mar 2018, tax return to be filed, 1040 - part year, - do the assets from the Sch E and Sch F get "sold" to the Estate, 1041? I understand the stepped up basis to the heirs, - just cannot wrap my head around the asset portion of the personal and of course I would like to file 2018 and 2019 together tomorrow and be done! Thank you, D Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted September 30, 2019 Author Report Share Posted September 30, 2019 ahh I think I remembered - sell them and estate "buys" them Thank you, d Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted October 1, 2019 Report Share Posted October 1, 2019 You do not show a sell of assets on the 1040 of the deceased. Assets go to estate at stepped up basis. Hope this helps. 2 Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted October 1, 2019 Author Report Share Posted October 1, 2019 that is what I did - and is it stepped up basis or FMV? How do you show that in ATX - separately on the 4797 when sold? d Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted October 1, 2019 Report Share Posted October 1, 2019 36 minutes ago, WITAXLADY said: How do you show that in ATX - separately on the 4797 when sold? Are you asking how to report the sale of the assets by the estate? If they were used in a business of the estate they would go on 4797, otherwise report as sale of capital asset. 39 minutes ago, WITAXLADY said: that is what I did - and is it stepped up basis or FMV? The estate gets a stepped up basis which is the FMV at date of death, if that is what you are asking. 1 Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted October 1, 2019 Author Report Share Posted October 1, 2019 I have the sales - but the issue was/is when I rollover the capital assets - and now I have this additional FMV or SUB and if I add it to the fixed assets as of 2018 - it shows as short term.. same with 4797 - there is no place for inherited except on the 8949 I worked around it on the 4797 by using the date of purchase with the additional $$ amount of the FMV but that is not really correct Thank you for your time d Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted October 1, 2019 Author Report Share Posted October 1, 2019 ps - I would love to send you some really good cheese for helping at the 11th hour! if you send me your address personally 1 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted October 1, 2019 Report Share Posted October 1, 2019 So as long as you are using the fmv on date of death as basis for estate and showing as long term gain then you should be okay. 1 Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted October 1, 2019 Author Report Share Posted October 1, 2019 Thank you D ps - address? Quote Link to comment Share on other sites More sharing options...
Catherine Posted October 1, 2019 Report Share Posted October 1, 2019 There should be a way to force it to long-term; inherited assets are always considered long term. Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted October 2, 2019 Author Report Share Posted October 2, 2019 I know but..... Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted October 2, 2019 Report Share Posted October 2, 2019 18 hours ago, Catherine said: There should be a way to force it to long-term; inherited assets are always considered long term. You can force it to part III of 4797 on the input tab. Then it should flow to Schedule D as long term. 1 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted October 2, 2019 Report Share Posted October 2, 2019 13 minutes ago, DANRVAN said: You can force it to part III of 4797 on the input tab. Then it should flow to Schedule D as long term To clarify, the non recaptured portion of the gain would show as LT capital gain. I would also note in the description that the asset was inherited. 2 Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted October 10, 2019 Author Report Share Posted October 10, 2019 thank you all! 1 Quote Link to comment Share on other sites More sharing options...
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