Does inherited stock receive a new tax basis?

Question

At the moment, I inherited property that the owner held for many years and the original purchase records are incomplete. At the moment, I may eventually sell the property, so I need to understand which value becomes my tax basis and what records will support it. For context, there is roughly $320,000 involved in my situation, which is large enough that I do not want to guess about basis, income, deductions, or filing requirements.

Soradin · Accepted Answer

Inherited securities commonly receive a date of death value, but account records should be checked before a sale. For the filing analysis, the federal income tax basis of inherited property is commonly tied to its fair market value at the date of death, though exceptions and alternate valuation rules can apply. When preparing the return, accurate valuation records are important when the property is later sold. Keep the statements and other source documents that support the calculation, and ask a qualified tax professional to check the taxpayer, form, basis, and deadline against those records.

Does inherited stock receive a new tax basis?

Soradin

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