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Author: edcosoft Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121222  
Subject: Re: Another capital gains question Date: 6/26/2007 12:33 PM
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Your basis in the stock is its value on the date of death (DOD) of the person you inherited from. If you inherited it directly this value is established by the Executor when inventoring the assets of the estate, and if applicable on his Federal Estate Tax return, so call the Executor.

It is possible that you inherited as the final beneficiary of a Bypass, or Marital, Trust, wherin you inherited from the first to die but aren't getting the funds until the second spouse dies. In this case the DOD is of the first to die. If you are inheriting anything from the second spouse to die, the value of that portion is at his/her DOD.

You do NOT get a current step up in basis on an inheritance from a Bypass Trust. You can tell which is the case for you by the name on the 1041 K-1, however the Executor should advise you of values.

ed



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