Submitted By: someone
Answered: October 28, 2021 1:25 am

I inherited stock from my parent and plan to sell it. What’s my basis for determining gain or loss?

Due to the stepped-up basis rule, the basis for inherited property usually is its value on the date of sale (special rules apply for property from estates using the alternate valuation date and for those inheriting from a decedent who died in 2010). What’s more, there is an automatic long-term holding period, regardless of how long you—or your parent—held the property.

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Tax Glossary

Disaster losses

Casualty losses such as from a storm, in areas declared by the President to warrant federal assistance. An election may be made to deduct the loss in the year before the loss or the year of the loss.

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