Liquidating inherited stocks

Posted by / 10-Dec-2019 03:35

Liquidating inherited stocks

This number should be much easier to obtain and it gives you a nice tax break.

If the price of the stock increased substantially over the course of the last 20 years, you do not have to worry about the taxes on that increase.

If you are lucky enough to receive inherited stock, not only will you receive the shares, but you will also get a nice tax break from the government.

Put simply, the tax basis is the price of the shares on the valuation date.

However, the alternative valuation date must be used by the entire estate.

The executor can't use the primary valuation date for some assets and the alternative date for others.

The basis price is the original price that you paid for the stock. If you inherit old stock from someone, the thought of having to go back and find out what the original price of the stock could be intimidating.

You have to know the basis price so that you can calculate the difference between what was paid for the stock and what it sold for. Finding out this information could be impossible or it could take a great deal of digging on your part.

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If you decide to sell the inherited stock immediately, you may be able to avoid paying any taxes on the sale.