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<< Through an inheritance, I have received 3 seperate distribtutions, sometimes with different "lots" of the same stock. Because of this, I have two different "cost basis" or tax basises". I have all the documentation and am treating them like first in, first out,(or whatever the term for that is, I do not have the book with me). My questions are these:

1. Am I going about it in the correct manner? >>

No. For inherited stock, your basis is the FMV as of the date of death. Its value when you finally get it isn't important. When you sell, it will be a long-term gain/loss, regardless of how long you held the stock in your name.

<< 2. Where do assign the commision to sell? >>

Usually sale commissions decrease your proceeds, as reoprted by your broker. (Your broker will advise how they're reporting.) If the broker reports gross proceeds, you add the sale commission to your basis.

<< Due to the complexities of the trusts, I am currently working with a stockbroker, and the commisions can be hefty ($100), so this is something I should not disregard.
As of this writing, I have just added the entire commission to the latter of my two cost basises and not added anything at all to the first one. >>

This doesn't sound right, but I can't figure out exactly what you're doing. Can you clarify?

Phil Marti
Tax Preparer
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