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New Member
posted Jun 4, 2019 7:44:27 PM

Example: Mother dies May 2016. Owned 1 share of a stock bought for $10 in 2010. That share is worth $15 at the time of death. Does she owe taxes on the $5 capital gain?

Understood that my tax basis is now $15 as the beneficiary of the stock. But I have to believe the IRS would not simply let that $5 in capital gain go un-taxed. Yet I see nothing on the tax forms that allow me to enter that "gain". 

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Level 15
Jun 4, 2019 7:44:28 PM

No she does not owe anything on the stock as it was not sold prior to date of death, nor was it sold by her estate.

The stock is only shown on an income tax return when sold.  

If you inherited it, you received the stepped up basis of the $15, and it would go on your return when and if it sold, with that cost basis.  

2 Replies
Level 15
Jun 4, 2019 7:44:28 PM

No she does not owe anything on the stock as it was not sold prior to date of death, nor was it sold by her estate.

The stock is only shown on an income tax return when sold.  

If you inherited it, you received the stepped up basis of the $15, and it would go on your return when and if it sold, with that cost basis.  

New Member
Jun 4, 2019 7:44:29 PM

Thank you so much for the answer. It seems strange that the IRS would ignore any chance to get their pound of flesh! This makes filing my mom's taxes a lot simpler.