Stock Inheritance Question

[Forestgal]

Okay, I know that there's probably somebody out there who knows the answer to my question ...

I inherited some stock from my mom's estate after she died. It wasn't transferred into our names for over 2 years. When we transferred it I sold my portion (it was a penny stock -- not worth a ton). Here's my question: I know that I need to claim capital gains on the price differential between when she died and when it was liquidated. She died on Nov. 13. Do I look at the cost of the stock on the 13th or on the 14th, which would have been the first full date after she died?

Thanks everyone!

Laura

[Bethers]

I can't imagine there will be enough of a difference between those 2 days to matter - unless the stock market really boomed or dove overnight that night. But as to how to handle it - you might have had to handle it as income the year you received it - just not sure - you need to talk to an accountant and make sure it's done right.

[pattyk]

Date of death. (retired CPA) That was an easy one, but don't ask me anymore questions, I'm trying to forget everything I've learned (ha, ha).

[avalen]

thought they did away with capital gains tax a few years ago, maybe I'm thinking of something similar that
they did away with.

[pattyk]

Reduced the capital gains tax.

[bluepinecones]

Not sure if different for "inheritance" vrs out right buy, but one must typically have owned stock for a full year to qualify for capitol gains tax rate; otherwise the profit is taxed as ordinary income.