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Value of Dividends upon death

January 26, 2017 • Kyrsten Gallo • Log In to Post Comments

When cap gains from a mutual fund are distributed at 12/31 and a death occurred on 8/31 of the same year how does one deal with the step up in basis for a trust tax return?  

Thank you.



The basis of the fund is the FMV at the date of death. Caital gain dividends paid after the death are taxable to the trust/beneficiary and no basis adjustment happens.


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