Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-07-2008, 08:03 PM
Junior Member
 
Join Date: Feb 2008
Posts: 1
Unknown basis

I recieved 100 shares from great grandfather before he died nobody knows when he purchased these stocks the bank has no records they were not publically traded until 1999 the stocks would have been purchased sometime in the 50's or early 60's when he became a board member of the bank. What do i do Please any help would be great the whole family recieved stocks but I am the first to sell.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-14-2008, 12:05 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,400
Blog Entries: 3
How do you value inherited shares?

I think you might be able to use the basis as of the date when the shares were physically transferred to you or the alternate date of valuation, 6 months after death of your grandfather, if the executor used this method.

What this effectively has done for you is to provide you with a stepped up basis for the shares that were passed to you. In effect, the basis would be equal to the prevailing share price as of the date of transfer to you!

This is great for you because now you have acquired the shares at almost FMV and if you were to sell these shares, you would presumably end up with very little capital gains and completely avoid capital gains tax altogether!

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning