Who do I talk to for estate taxs, losses, and income statements?

January 12, 2010 1:03 PM

I have an estate tax statement showing a loss from the estate of my grandmother in another state. How do I find a professional who can tell me how to file this where I live to the best April 15th benefit?

My grandmother passed last year and left me a share of her estate. Due to the fantastic market we had (she invested in a lot of bank stocks), the liquidation of the shares ended up also giving us a negative gain. In other words, I have a tax statement showing that I have a loss of several thousand dollars. According to my non-detail providing executor (father), I can somehow use this on my taxes this year to reduce them. Given the documentation is for the state of PA and I live in NJ, this gets a little complicated, I think. Here is what I would like help on.

Who should I contact about 1) advice and 2) professional services to help with this? I don't plan on needing a tax person next year but I would hate to waste this opportunity. I also have heard from other reliable sources that tax prep companies are NOT the place for this kind of information or help. Where should I be looking?

posted by Koffeeman to Work & Money (2 answers total)

Call an accountant in your jurisdiction. They will be able to handle this. If you give more detail on where you are (North Jersey? South Jersey?) someone may be able to MeMail you the name of a good CPA. This sounds like it should be a simple question for an accountant after you've given them the necessary paperwork. I am not your lawyer or accountant, this is not legal or accounting advice, etc.

I am sorry for your loss.
posted by Admiral Haddock at 1:23 PM on January 12, 2010

Trying to read between the lines, it sounds as though you sold the inherited shares for less than the "stepped-up" basis you received for them from your grandmother's estate. Any local CPA should be able to help with this. You probably don't need to do anything in PA, other then perhaps get more documentation to prove what your basis was, so you can prove what your financial loss actually was. Then the question becomes to what degree, if any, can you use that loss to offset other gains on your tax return. That will depend on the types and amounts of other gains you have. Kinda like Animal Farm, all losses are bad, but some losses are more bad than others. Again, any local CPA should be able to help you - it's not a "file in NJ; file in PA" question. It would be worth an hour or so of his/her time to find out the answer and apply it to your specific tax/income situation.
posted by webhund at 6:14 PM on January 12, 2010