Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Based on the lower of cost OR (FMV) Fair Market Value which has sadly plummeted over the past few years right?

Cost is stops being part of the equation for inherited stocks.
As Peter said (and I've read on this board before):

"the cost basis of each stock is changed to the FMV as of the date of her death."

Whether she bought INTC in September 2000 or September 1980, it doesn't matter. The new basis is now steppped down (from 2000 prices) or up (from 1980 prices) to the FMV as of her death. Mostly people think of it as a "step up in basis" even though it's not necessarily an "up".

And from what I've read here, the relevant time for FMV is as of the date of her death, not when someone moved the stock from one account name to another.
Perhaps one of the resident experts can point to useful information on how to determine the FMV. (closing price for the stock on that date? average of high and low of the stock for that date?)
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.
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.