You are here:

Tax Law (Questions About Taxes)/Cost basis of inherited securities


I inherited stock from my father. I believe the cost basis will be stepped up from $10 per share he paid for it to the $50 per share on his date of death. The stock is currently in his Estate Account until the estate settles. Is the cost basis stepped up to $50 while the stock is in the Estate Account so it can be sold with a much reduced capital gains tax?


But there are many other possible pitfalls for the unwary as well as opportunities for theastute planner. Even post mortem

How much value are we talking about? Who is settling the estate (they should know the answer to this and the many other questions yiu shod have). How many other beneficiaries? If not large estate why not settled quickly?

If large estate why not have professional advice?


Ps. Sorry for your loss.

Tax Law (Questions About Taxes)

All Answers

Answers by Expert:

Ask Experts




Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

AICPA, CSCPA (Ct society), National Tax,

a bunch.

MS tax and other post graduate coursework

Awards and Honors
variety including Summa Cum Laude

Past/Present Clients
I don't disclose or kiss and tell

©2016 All rights reserved.