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Discussion Forum Index --> Basic Tax Questions --> Deceased Individual - No records. What do I do?
Discussion Forum Index --> Tax Questions --> Deceased Individual - No records. What do I do?
Lindaea (talk|edits) said:
| 26 February 2009
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| Hi all- I am trying to prepare a final return for a deceased individual. Obviously, it is my first time doing it. During his last year, he withdrew approx 40K from his IRA to pay off his nursing home expenses. He also had a stock portfolio, but the brokerage firm sold a lot of his stock as a result of margin calls. Now that he is deceased, there are no records w/ respect to his basis in IRA or cost of stocks that he bought years ago. So, here are my questions: 1) Can I just offset the IRA distribution w/ the medical deduction on schedule A for the nursing home payments? 2) What should I do about his stock transactions? I would appreciate any help I can get.
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Blrgcpa (talk|edits) said:
| 26 February 2009
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| The executor should have received 1099s. Contact the brokers for the details.
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Kevinh5 (talk|edits) said:
| 26 February 2009
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| agreed, the executor can get copies from the broker.
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Lindaea (talk|edits) said:
| 26 February 2009
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| Yes. we have 1099s for the IRA and his stock ; however, the cost is unknown. Noone knows when he contributed to the IRA or bought any of these stocks.
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Kevinh5 (talk|edits) said:
| 26 February 2009
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| have the executor comb through all of the decedent's papers and records. It is the duty of the taxpayer to keep track of his basis, so the records exist somewhere.
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CrowCPA (talk|edits) said:
| 26 February 2009
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| A look at last year's tax return should show if there was any basis in the IRA. Old tax returns may give some clues about the acquisition of the stocks.
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Blrgcpa (talk|edits) said:
| 26 February 2009
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| The broker may be able to give you the cost.
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Taxea (talk|edits) said:
| 27 February 2009
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| The broker would not have the cost if the company that held the original stock changes hands or the client moved from one investment company to another. I would have the executor do the research and you file an extension if needed. I just love these people who wait until the tax season to get the documents together. I don't have the time during the season to be an investigator. taxea
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DZCPA (talk|edits) said:
| 27 February 2009
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| If total stock sales are estimated to be a loss, guess to the cost basis. It will not mattter since there is no tax liabilty. Save yourself a lot of time.
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Mscash (talk|edits) said:
| 27 February 2009
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| The basis of a traditional IRA ought to be zero. The broker should be able to provide cost of stock sold or at least a purchase date. My ever cloudy crystal ball predicts a wash on this one.
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Mscash (talk|edits) said:
| 27 February 2009
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| The basis of a traditional IRA ought to be zero. The broker should be able to provide cost of stock sold or at least a purchase date. My ever cloudy crystal ball predicts a wash on this one.
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Death&Taxes (talk|edits) said:
| 27 February 2009
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| "Cost of stocks he bought years ago"? Lots of luck with the broker. Had this once in the last ten years and found that the stocks were bought in the early to mid-fifties.
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