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<< 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

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