Kenny
Went back and read your posts from beginning and wanted to clarify a few things. Not knowing the exact qty of shares and how much they may have increased or decreased makes it very hard to give you a correct answer. Also not knowing the laws of your state as far as estate taxes.or requirements to file .You will (probably) have to hire an accountant to prepare the estate tax return as this needs to be done prior to your personal return. I would not wait because he will ask a lot of questions and require a lot of backup to complete this. If the stock paid out any dividends there should have been an estate return filed every year since he died and the IRS may require this. Are you the Fiduciary? Have you heard that word? It mainly just means that you are in charge of filing and signing the estate return and dividing the income and deductions between you three. It will gather all that and at the end kick out a 1099 for each of you showing amount of income to report. It does not give you a basis but I would strongly urge all of you to use the same basis. Thats the simple of it. It can get worse if you were required to file every year before distributing the estate because then every one of yours and their returns would require to be amended to catch up with the estate. his creates a ream of paper and it all has to be documented. To me that is a bigger problem than the ss or medicare tax. I would inform them that you require x amount up front (after getting a quote from accountant) to pay for all this work. When you each get a 1099 it is not earned income but instead a stock sale showing the basis as Inherited. This does two things--automatically goes to LT cap gains AND
She died in 2009. All these numbers are approximate. At that time there were 5000+ shares and worth $19. Afterwards the shares split 2 -1 so over 10,000 shares. Over the years before she died there were several stock splits so the initial cost of the stock is kinda a grey area.
Kroger (KR) has had several stock splits in the past, including:
July 14, 2015: A 2:1 stock split
June 29, 1999: A 2:1 stock split
April 23, 1997: A 2:1 stock split
October 1, 1986: A 2:1 stock split
May 28, 1979: A 2:1 stock split
some of the initial stock was bought in 1975. She bought 1 share of stock every paycheck for years.
All dividends since the beginning went back into the account and bought more shares. No dividends ever taken so not taxed. Dont ask me how that works. Last statement showed approximately 10,300 shares. It closed yesterday at $62 +. Its still in the estate name. Yes i have talked to a CPA and he will handle it. But i want to know what questions to pose.
I was appointed the execuator of the estate. I won't make that mistake ever again.
Thanks for all comments.