Capital Gains and Losses
Questions and comments about tax rules for buying and selling stocks, mutual funds, real estate and other assets.
Step Up in Basis
Posted by: caesark, March 13, 2017 08:14PM
Client inherits a portfolio of stocks. Step up in basis applies. Do the rules requiring broker maintenance of cost basis state which broker is responsible for revising cost basis, i.e. the transferring broker or the receiving broker?

Re: Step Up in Basis
Posted by: Alan S., March 13, 2017 10:41PM
Caesark, the transferring broker must provide the following information to the receiving broker, who would then incorporate the data into their own system for reporting future sales.

[tax.thomsonreuters.com]

Not sure this covers all cases. For example, for a joint account held by two people where one JT passes, how does the broker know how much each JT contributed to the account?

Re: Step Up in Basis
Posted by: caesark, March 14, 2017 02:58AM
Alan S
You are a Godsend, you know everything.
God bless you for your voluntary efforts to help us all uninformed!



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