Solved: Cost basis for inherited stock
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Level 1

Cost basis for inherited stock

My aunt died on 2/22/2018.  Inherited stock from her was put into my account on June 27, 2018.  I sold the stock in 2020.  In looking at the 1099-B i noticed that some of the stock i inherited was acquired in May of 2018 i.e. between the date of my aunt's death and the date i came into possession of the stock (i am assuming her money manager was continuing to manage her account and that is how the May 2018 purchase was made).  So what date do i use as a cost basis for the stock acquired after my aunt's death but before i was in possession of it?

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Level 15

Cost basis for inherited stock


@ubernautilus wrote:

So what date do i use as a cost basis for the stock acquired after my aunt's death but before i was in possession of it?


Any property, tangible or intangible, that is acquired after her death would be the normal cost basis (i.e., not the inherited, stepped up, basis).

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4 Replies
Level 15

Cost basis for inherited stock


@ubernautilus wrote:

So what date do i use as a cost basis for the stock acquired after my aunt's death but before i was in possession of it?


Any property, tangible or intangible, that is acquired after her death would be the normal cost basis (i.e., not the inherited, stepped up, basis).

View solution in original post

Level 3

Cost basis for inherited stock

If I remember correctly, the cost basis steps up to the value upon inheritance.  

Level 15

Cost basis for inherited stock


@ThickAsABrick wrote:

If I remember correctly, the cost basis steps up to the value upon inheritance.  


Property acquired from a decedent is stepped up to the fair market value on the date of death of the decedent per Section 1014(a).

 

Property acquired after the death of the decedent (as was the case presented in the original question) does not receive a stepped up basis.

Level 1

Cost basis for inherited stock

You should use the ACTUAL date that YOU acquired the stock.

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