Calculating capital gains on inherited stock
I have a client that had inherited stock over 20 years ago, he is in some financial difficulty and I would like to do some planning for him but I don’t know how to calculate the capital gains on his inherited stock, mainly because I don’t have the cost basis or the exact year that he inherited them. Any ideas would be welcomed.
Permalink Submitted by Bruce Steiner on Mon, 2012-05-21 02:32
Some possibilities include:
1. The decedent’s Federal estate tax return.
2. The decedent’s state estate tax return if the estate was too small to file a Federal estate tax return.
3. If the estate was too small for a Federal or state estate tax return, the inventory for the decedent’s estate, if any.
4. The attorney for the decedent’s estate.
5. The executor of the decedent’s estate.
6. The client should know when the decedent died. If not, you or your client could obtain a death certificate, or check the social security death index for the date of death.