Beneficiary receives mutual funds. Any long term gains if sold after 3 months?
Beneficiary receives mutual funds. Any long term gains if sold after 3 months?
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Bill M. · External communityPost link
External question — Personal Finance Stack Exchange
Author: Bill M.
Original post: https://money.stackexchange.com/questions/165800
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I am the direct beneficiary of mutual funds held by a person who subsequently died. I moved all of them into money market funds after ~three months so I no longer hold any of the funds that I had received as beneficiary of them. I realize that there may be short term capital gains for the 3 months that I held them. However, the 1099Bs received (barter and broker so called) from the mutual fund company has long term capital gains posted for all of these funds despite my holding them for well less than a year. This appears to be a significant error by the m. funds company. Thoughts?
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littleadv · External communityPost link
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Author: littleadv
Original post: https://money.stackexchange.com/a/165802
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There's no error. See
the IRS Publication 559
:
Holding period.
If you sell or dispose of inherited property that is a capital asset, the gain or loss is considered long term, regardless of how long you held the property.
The cite for transfer on death getting the "step up basis" treatment is the
IRC Sec. 1014(b)
.
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: Bill M. Source score (net votes, not local likes): 0 Original post: https://money.stackexchange.com/questions/165800 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I am the direct beneficiary of mutual funds held by a person who subsequently died. I moved all of them into money market funds after ~three months so I no longer hold any of the funds that I had received as beneficiary of them. I realize that there may be short term capital gains for the 3 months that I held them. However, the 1099Bs received (barter and broker so called) from the mutual fund company has long term capital gains posted for all of these funds despite my holding them for well less than a year. This appears to be a significant error by the m. funds company. Thoughts?
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