Message Font: Serif | Sans-Serif
 
No. of Recommendations: 3
A relative died with old stock certificates. Is it possible for the heirs of the estate to write off this loss against any capital gain or ordinary income?

Quick answer - no. The heirs inherit the stock at its FMV as of the date of death. Any loss before then belongs to the decedent, and if the decedent has unused loss carryovers, they die along with the decedent. The executor of the estate might be able to use the loss on the decedent's final return, or amend any open years to claim the loss, but the loss stays with the decedent and can't be transferred to the heirs.

Also, is it possible to find out when these certificates became worthless and how much this relative may have originally paid for them? Does the face of the certificate offer any clues?

A stock broker could probably help you with the first part - when they became worthless. This is a place where a full-service broker earns his/her keep.

But as to what was paid for the stock, you'll have to dig through records to find that. There is likely an issue date on the face of the certificate. That will tell you when the certificate was issued. You can use that as a starting point in your record search. Basically, you'll need to start at that date and go back in time to find the purchase. The one thing you know is that the stock was purchased sometime before the issue date.

--Peter

PS - What's the stock? Perhaps someone here can help.
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement