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timmartin2004
New Member

When using the date of purchase on a stock Left To You by someone do you use any price during that day that's the highest or do you have to use the closing price?

 
5 Replies
Critter
Level 15

When using the date of purchase on a stock Left To You by someone do you use any price during that day that's the highest or do you have to use the closing price?

Did you inherit the stock?
tagteam
Level 15

When using the date of purchase on a stock Left To You by someone do you use any price during that day that's the highest or do you have to use the closing price?

If you inherited the stock, you use the fair market value on the date of death and that would be the average of the highest and lowest selling prices on that date. 

However, if there were no sales on the date on death, then you would use a weighted average between the highest and lowest sales on the nearest date before and the nearest date after the date of death (e.g., if the date of death occurred on a weekend, you would use take the averages for Monday and Friday and then average those two numbers).

See Treas. Reg. §20.2031-2

TomYoung
Level 13

When using the date of purchase on a stock Left To You by someone do you use any price during that day that's the highest or do you have to use the closing price?

Your question seemed to morph between "date of purchase" and a question about the value of the stock.

tagteam has provided the information about the "value" aspect of the question.

As to the "date of purchase", inherited assets are considered to be "long term" assets irrespective of how long the deceased actually owned the stock or how long you owned the stock.  That's simply what the tax law dictates.  If you sell the stock at some point you'd tell TurboTax you inherited the stock and TurboTax will automatically place the gain or loss into the "long term" section of Schedule D.

Tom Young

rjs
Level 15
Level 15

When using the date of purchase on a stock Left To You by someone do you use any price during that day that's the highest or do you have to use the closing price?

On your tax return the purchase date for inherited stock will be shown as the word "inherited" instead of an actual date. If you are asked to enter a purchase date, enter "inherited."
Anonymous
Not applicable

When using the date of purchase on a stock Left To You by someone do you use any price during that day that's the highest or do you have to use the closing price?

if inherited enter that word in the date acquired and make sure the gain is long term

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