Inherited stock

[rickyrat11]

My father recently passed away and I was the beneficiary of his stock holding. Is it correct, that I will only be responsible for the capital gains tax on the earnings since the date of his death and not all he earned over the years?

[tagteam]

---

@rickyrat11 wrote:

Is it correct, that I will only be responsible for the capital gains tax on the earnings since the date of his death and not all he earned over the years?

---

Yes, that would be correct.

[R-SchuleCPA]

The tax code of the United States holds that when a person (the beneficiary) receives an asset from a giver (the benefactor) after the benefactor dies, the asset receives a stepped-up basis, which is its market value at the time the benefactor dies (Internal Revenue Code § 1014(a)).