How to establish cost basis of an inherited stock

How to I arrive a the cost basis of a stock that I inherited from my mother's estate?

posted

The basis is the fair market value on the date of your mother's death.

You would average the high and the low of the stock price for the day of death (i.e., add the high and the low together and divide by two). If your mother died on a weekend, you would go through the same procedure for Friday and Monday.

Th666: Thank you for taking the time to explain this issue to me. After receiving you response, it makes perfect sense to me and I am able to proceed with my return.

williamwally1