Inherited Stock

外汇网2021-06-19 16:25:52 160

A stock that an inpidual obtains through an inheritance after the original holder has died. The cost basis for the stock is based on the market value of the security upon the donor's death. If the stock value increased during the time it was held by the deceased, its cost basis is "stepped up" when ownership is transferred .

Taobiz explains Inherited Stock

Unlike gifted securities, for tax purposes, the security is not valued at its original cost basis. Only the appciation from the day of inheritance is subject to a capital gains tax.

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