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You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > Income Tax
Expert: Carole Dunton
Date: 8/30/2008
Subject: Income Tax
Question
I am the executor of my mother's small estate. She had two stocks. I filled out the paperwork to transfer them to me and have received a check for selling one of them. The total for both stocks is around $11,000. They attached a 1099 form with my social security number. Do I have to pay income taxes on this? I am a 50% beneficiary and a step sister gets the other 50%. What do I need to do
Answer
Hi,
Since you inherited the stocks and sold them immediately there would be little or no gain on the sale. Your basis in the stock is the fair market value on the date of your mother's death. Presumably the stock price did not fluctuate much after that date. Your gain or loss is the difference between the selling price and your basis.
Regards,
Carole
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