None of that is your problem, assuming you aren't the executor. The executor will get 1099s and file the decedent's return(s). You do not have to concern yourself with taxes on anything except any capital gains you may have realized in the short period between the date of death and your sale (all of which are long term by law).Hey folks, looking for a little help with understanding the tax treatment of funds that have passed into my hands following the passing of a relative.
In December, the relative passed.
In January, I received cash and a variety of stocks into a Fidelity account, which were passed via transfer-on-death from the decedent’s Fidelity account.
I sold all the individual stocks within about a week.
From then until mid-February, I have received several small sums of cash, with the transfer documentation “transfer from [Decedent’s account #] - cash.” I assume that these reflect dividends that arrived some time between the decedent’s expiration and the present, but there is no way to tell for sure where they came from, or exactly when they hit the decedent’s account.
So does anyone know how these bits of cash will be treated at tax-time? Are they just part of the inheritance and therefore untaxed? Are they ordinary income? Are they dividends? If the latter, will the fact that I sold the stocks that presumably generated them affect whether they are ordinary or qualified? Will they effect the decedent’s 2024 taxes?
Statistics: Posted by toddthebod — Sun Mar 02, 2025 10:53 pm