stock basis

[gman]

H & W in community property state. Husband works for electric company and purchases stock thru payroll deductions over many years(20-30). In 2000 husband dies and in 2007 wife sells stock. Basis would be stepped up in 2000.---correct???

could I find basis on internet???

[BOB W]

H & W in community property state. Husband works for electric company and purchases stock thru payroll deductions over many years(20-30). In 2000 husband dies and in 2007 wife sells stock. Basis would be stepped up in 2000.---correct???

could I find basis on internet???

Check out "BigCharts.com" for old quotes.

Step up seems correct but I'm not a community property state guy.

[taxmandan]

Basis in 2000 is right.

Basis would step-up on his DOD in 2000. I'm not in a community prop. state so I'm not sure if the whole basis gets a step up or just 50%. Try www.bigcharts.com for historical stock prices.

Daniel

[dsi]

how was title held on the stock?

[dsi]

Did he have a trust, and if so was the stock in the name of the trust?

[WhiteOleander]

What was the value given to the stock by the executor/adminstrator when the decedent died? The value would have had to be assessed at that time to see if federal or state inheritance tax was due. That is the value to be used now that the stock has been sold.

[RJM]

If you call the "shareholder services" department at the company, they probably have an in-house database. Most publicly traded utilities who had these programs, and DRIP programs from the 60's through 80's, kept in-house records with basis adjustments.

[JON]

Community property

gives you a step up on 100%, I believe. MN not community property.

[sea-tax]

What was the value given to the stock by the executor/adminstrator when the decedent died? The value would have had to be assessed at that time to see if federal or state inheritance tax was due. That is the value to be used now that the stock has been sold.

I am by no means an expert on the death tax and its ramification. I have so very few clients die that when I do I usually research the issues in detail.

But my limited understanding is that when one spouse dies in a community property state the assets transfer to the living spouse tax free and it is when that spouse dies that the tax is paid if any.

However a valuation still should be done to get the proper value on assets so that if the living spouse does not die for many years the step up values can be easily determined.

To answer the question I think that the wife gets stepup to value on date of death for 100% of the stock. This would also apply to other assets owned by the husband and wife.

Just my 2 cents hope it helps.

[WhiteOleander]

Yes you are right. But, in Texas, my state, you have to pay state inheritance tax over 600,000. And I am not aware of any offset.

That why I was saying a value would have had to be set at the time of death.

[S T]

Community Property States

Look to your State Laws, however, in California which is a Community Property State, it is still recommended that you obtain an appraisal valuation and formally establish the value as of the date of death. Cost is usually about $300 per real estate property, not sure about the cost on other assets.

As a side note, now in California you can request an appraisal or valuation from the Probate Court Appraiser at much or lesser cost than an outside independent appraiser. Several of my clients have used them.

Sandy