How Do I List Sales of Stocks or Mutual Funds?
Sales of stocks or mutual funds (including ETFs, REITs, etc.) are categorized as either “Gains on Asset Sales” (line 3) or “Losses on Asset Sales” (line 7). Do not categorize sales of stocks or mutual funds as “Receipts” (line 2).
How Do I List Stocks or Mutual Funds as Assets on Hand?
When listing stocks as “Assets on Hand,” take care to ensure that you list the carrying value of the stock for purposes of the total on line 9 of the accounting rather than the fair market value of the stock. The carrying value is the same as the inventory value, but adjusted for any subsequent sales or purchases (including reinvested dividends).
The fair market value of the stocks (or any other asset on hand) should still be separately listed. In other words, you will have one list showing the carrying value of the assets on hand and another list showing the fair market value of the assets on hand, with the totals for each list shown on the appropriate place on the summary sheet of the accounting (either line 9 or the line labeled “Market Value of Assets on Hand”).
How Do I List Dividends?
Dividends received by the estate are categorized as “Receipts” (line 2).
If the dividends are reinvested into the stock, ensure that you also increase the carrying value (and number of shares) of the stock by the amount reinvested.
How Do I List Distributions of Stocks or Mutual Funds to Beneficiaries?
Distributions of stock directly to beneficiaries are categorized as “Distributions to Beneficiaries” (line 8). Do not treat these distributions as “Gains on Asset Sales” (line 3) or “Losses on Asset Sales” (line 7).
How Do I List Stock Splits?
Stock splits are reported as adjustments (line 4). Simply describe the basic details of the stock split, such as the type of split and the number of shares before and after the split. However, the value assigned to the adjustment for the stock split will be $0.00, as a stock split does not change the overall carrying value of stock (although it will of course change the carrying value per share for purposes of calculating gains or losses on partial sales of the stock).