Determining base for inherited stock

Forum|Forum|6 years ago
February 11, 2020
2 replies
47 views

2002 inherited 1334 shares of FMS stock @$12.52, $16,701.68

2007 FMSmerged with BNCL, 826 shares/$35.66 - $29,456 - cash out

508 shares converted to 1422 shares of BNCL @$9.72/share $13,821.84

2019 BNCL merged with WSFS, 1546 shares BNCL sold for $2.93/share - $4,582.52 - cash out

Rec'd 471 shares WSFS @41.94/share - $19,753.74

What would the base be for determining gain/loss for the $4,582.52 cash rec'd in 2019

MichaelL1

Level 15

It looks like in 2002 you had a basis in the inherited stock of $16,701.68. Fair Market Value at date of death in 2002.

Then in 2007, you say you got cash out of over $29K. The 2007 return would (or should have) used some or all of the basis in the stock of $16,791.68.

You need to review how this was handled in 2007, and if it was all used in 2007, your basis would then be $0 in 2019, plus any reinvested dividends reported as income.

Normally on mergers, the companies give some information on the merger that can also help assist in deterring the basis, after the merger.

rlegoreAuthor

Level 2

Thanks for your help.

Determining base for inherited stock

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