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Tax Law (Questions About Taxes)/Estate Stock Sale Reporting


I have some stock in the name of the family estate; A/B Revocable Trust.
My children are successor trustees.
When I die, the proceeds are credited to the trust account.
The account is less than 1 Million.
Since the IRS will receive a 1099 regarding the sale,how are the proceeds reported.   
(The deceased final year 1040, presumably will not reflect the sale...or should not , I suppose).
Hope you can help. Thanks for volunteering.


Thanks for your question.

If the stock is sold by the trust, it would be reported on the trust income tax return (Form 1041).  There will be a stepped up basis of FMV as of date of death.  It would be best to then have the tax (if any) paid by the beneficiaries.  They can deduct a loss if there is one.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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