In the TaxBook

[veritas]

I tried to find more information on valuing securities for stepped up basis. I can't find much information other than value on date of death? Of course every client I have dies on a weekend.

[Lion]

Dod

Isn't it DOD or next business day? (Or, alternate valuation date.) Average of open and close? Or, is it average of high and low? I didn't have anyone die in 2007.

[Edsel]

Try Their References

Veritas, thou purveyor of truth, the hard-in-concrete "date of death" valuation is not so hard, in fact, rather squishy. I think there is an option 3-month or 6-month period where you may report on the 706 a fluctuated value if you so elect.

TTB has one chapter devoted to Estates and Trusts, whereas another whole 600-page book could perhaps be written on just this subject alone. Where the subject matter is too detailed and expansive for publication, they have done a good job in listing reference materials at the beginning of the section and at the beginning of major topics. I would try this.

[Gene V]

I tried to find more information on valuing securities for stepped up basis. I can't find much information other than value on date of death? Of course every client I have dies on a weekend.

See the instruction on page 13 and 14 Form 706 under Valuation

[veritas]

Eureka!

I've found it!

"Stocks and bonds. The FMV of a stock or bond is the mean between
the high and low selling prices quoted on the valuation
date. If the valuation date is not a trading day, average the high
and low values on the nearest trading day before and the nearest
trading day after the valuation date. For death on a weekend, average
the Monday high and low and the Friday high and low.
Example: ($35.49 + $35.15 + $35.73 + $34.95) ÷ 4 = $35.33.
The weighted average calculations in the regulations are needed
when the valuation date is a trading day but the stock being valued
wasn’t traded. See Regulation Sections 20.2031-2 and 25.2512-
2 for weighted averages and other stock and bond valuations. If
only the closing selling prices are available, then the FMV is the
mean between the quoted closing selling price on the valuation
date and on the trading day before the valuation date"

Page SB10-23 in the TaxBook.