Welcome, Guest. Register Now!
   
Veiw New Posts View Todays Posts


» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 
Financial Planning
 
US Presidential Tax Policies
 
 
 



View Single Post
  #2 (permalink)  
Old 01-28-2007, 10:53 AM
TaxGuru TaxGuru is offline
Super Moderator
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 804
Blog Entries: 2
Since you inherited the stock in 2003 and assuming the Estate Adminstrator elected to use the valuation date that calculated the basis of your stock at $15,000, this effectively becomes your basis for tax purposes.

IRS has special rules for assigning valuation for inherited property. In fact, for you despite your basis is $0 dollars, you get a stepped up basis, to $15,000 and save paying taxes on $15,000 of capital gain.

Amir, you are one of the lucky taxpayers that the IRS has given a tax break for your situation. Your reportable gain is therefore $17,000 of long term gains!!
__________________
Ask TaxGuru
Please refer to the legal disclaimer.
Reply With Quote