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posted Jun 1, 2019 12:04:09 AM

How do you enter the cost basis for the sale of inherited stock?

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Level 13
Jun 1, 2019 12:04:09 AM

The cost basis of stock that's inherited is, most commonly, that stock's fair market value at the date of death.  (There's an alternate valuation date 6 months after the date of death but the executor of the estate should have reported that to you if that's what was used.)

Your subsequent sale of this stock is considered "long term" irrespective of how long you or the decedent actually owned the stock.

Tom Young

1 Replies
Level 13
Jun 1, 2019 12:04:09 AM

The cost basis of stock that's inherited is, most commonly, that stock's fair market value at the date of death.  (There's an alternate valuation date 6 months after the date of death but the executor of the estate should have reported that to you if that's what was used.)

Your subsequent sale of this stock is considered "long term" irrespective of how long you or the decedent actually owned the stock.

Tom Young