Capital Gains and Losses
Questions and comments about tax rules for buying and selling stocks, mutual funds, real estate and other assets.
Inherited stock cost basis
Posted by: stewartb, February 19, 2017 01:40PM
I inherited 100 sh of Lojack stock on my mother's passing 9/3/15. Sold the stock 3/24/16 for $645.00 @ 3.08 per sh. On 9/3/15 the stock closed @ $3.08 per sh or $308.00 for all sh. Do i need to know the AVERAGE high & low or closing price to determine cost basis? Thank you

Re: Inherited stock cost basis
Posted by: kaneohe, February 19, 2017 02:35PM
This is a multi-step dig and you were almost there.
Many links reference FMV (fair market value) and other state date-of-death value. One stated average value but then gave an example of the average of various time periods. It would be virtually impossible to calculate the average for a day if you you had to know all the trades so this seems like the most reasonable for a stock. []

It says for publicly traded stock:

The usual rule is that the value on any given day is the average of the high and low selling prices on that day.

This assumes that no estate tax was filed, or if one was, that the alternate filing date was not used.

Re: Inherited stock cost basis
Posted by: Art, February 19, 2017 05:37PM
Try for high and low for a given day.

Sorry, only registered users may post in this forum.