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Under the new tax and estate rules how does one figure the cost basis of inherited stock? There was some talk that the cost basis of inherited stock would no longer be valued at the closing price on the date of death.

First, as the experts have indicated several times recently, you need to wait until the bill is signed into law and the full text is available. This should entail waiting something like 24 hours.

For what it's worth, here's an excerpt from the text the Senate was considering last week, pertaining to an amendment to the current provisions in the step-up in basis at death:
   This section shall not apply with respect to decedents
dying after December 31, 2010.
The final version may differ somewhat from this, but you get the idea -- the change, if it ultimately does take place, will probably not occur for several years.

Hope this helps,
Phooley in Phoenix
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