On September 1, Year 1, Pete Moss bought 2,500 shares of Bicycle
Bob's, Inc. stock for
$180,000. The FMVs of this stock on certain dates were as
follows:
July 23, Year 6$175,000
August 5, Year 6190,000
Moss died on July 23, Year 6, bequeathing this stock to his son,
Joe. The stock was distributed to Joe on August 5, Year 6. No
elections were made with respect to valuing the stock. Joe's basis
in this stock is
|
$175,000 |
||
|
$180,000 |
||
|
$190,000 |
||
|
$180,000 plus applicable inheritance taxes. |
Joe's basis in this inherited stock is $ 175,000.When stock inherited from someone, basis becomes the value of that stock on the date that person died. Moss died on July 23. And FMV on that day was $ 175,000.
On September 1, Year 1, Pete Moss bought 2,500 shares of Bicycle Bob's, Inc. stock for...
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