She passed away with basis in her IRA

[Possi]

What happens now? 

Both had basis in IRAs, and I have the 8606 forms year to year. 

What happens to her 8606 and basis after death?

[Possi]

Too late to edit, so here it is...

I know the basis carries to the beneficiary, who is her husband. 

I believe I need to wait until he has a distribution from the account before I can claim the basis. So, my question is how to keep track of it. Do I leave the 8606 in the tax return? 

When he takes a distribution from this inherited account, that's when I deal with the basis? 

I'm just anticipating. He might not ever take it. 

[Pacun]

31 minutes ago, Possi said:

I'm just anticipating. He might not ever take it. 

It might be a good idea to answer the question at that time then.

If I am not mistaken, you keep record of the basis by having 8606 forms.  Let's say the IRA value is $30,000 and the basis was $20,000. If your client takes out $3,000 then the taxable portion is $1k.

[Possi]

He inherited that IRA (she died in 2020) and moved it to his own IRA. There isn't a 1099 for that move, so next year when she is off the return, I believe I can move her basis onto his 8606. It will come out the same. 

Yes, I'll wait.