Shares Sold

Yes. Stock sales are taxable. Your broker will report the sale to the IRS. The taxable amount is the difference between the sales price (less sales expenses) and the inherited value of 200 shares. If you sold for less than the inherited value, you can claim a loss.

The value of your inherited stock is:

• The fair market value (FMV) of the property on the date of the decedent's death (whether or not the executor of the estate files an estate tax return.
• The FMV of the property on the alternate valuation date, but only if the executor of the estate files an estate tax return (Form 706) and elects to use the alternate valuation on that return.

Is money received from the sale of inherited property considered taxable income?