So these are adjusted in the new account based on the date of death or alternate valuation date? The actual re-titling to the new owner often can take place long after DOD. It is unclear to me what the broker's obligation is here with respect to IRS filing of the 1099-B.After Vanguard migrates the fund assets of the deceased to the new account owner the value of those assets become the basis for the new account.Do you know what they report to the IRS?Brokers (and all other 1099 filers) are required to report accurate information. On a sale of inherited shares this would seem to require tracking basis (at least after the covered share rules started). As noted by retired@50, they'd have to be informed of the date of death.
Google "step up basis at death".
The surprise is not about the step up rule existing, the surprise is that brokers keep track of updating the basis for you and reporting the updated basis to the IRS.
Statistics: Posted by jebmke — Sat Feb 24, 2024 2:06 pm — Replies 1451 — Views 156004