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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123155  
Subject: Re: basis question Date: 6/11/2014 5:51 PM
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But then one last question - where does this "inherited" pile of shares sit in the FIFO pipeline, at the front (oldest) or back (newest)?

It's possible you'd go back to the original purchases (with the full number of shares, not just half) and say half is valued at the original purchase and half with the step up.

That's what I've always done. My understanding is that the holding period is still the holding period, it isn't affected by death/inheritance. What does change is that all gains/losses on inherited asset sales are treated as long-term regardless of holding period.

Years ago my software couldn't handle "Inherited" as an acquisition date, but did provide a long-term/short-term override, so I got into the habit of using the original acquisition date, and applying the override when necessary.

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