Message Font: Serif | Sans-Serif
No. of Recommendations: 0

<< The executors of the estate

told me that my cost basis is the stock price on the day that the transfer ocurred, but the MF Tax FAQ seems to say that it's the date that she died. >>

I do not believe this to be correct.

If taxes were paid on the estate you should use the valuation that was used on the tax return. For the tax return stocks can be valued for death tax purposes at the mean of high and low on the date of death or six months after DOD. Sometimes special valuations will be used to reduce the taxes.

If no estate taxes were due you should use the mean value on the DOD which is listed on the 90 day inventory and the final inventory filed during the probate process. The clerk of court will have the final inventory. You should have been provided a copy but if not you can get one from the clerk. They will probably charge a small fee to make the copies and the copies should be kept with your tax records as proof of your cost in the case of an audit. You may want to read the entire file in the clerks office. It is public record.

Bill Stanley

Print the post  


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.