For all intents and purposes, when he left you everything in his will,
you became the owner as of his death. For tax purposes (reporting
gains or losses) and to know whether or not you will gain or loose
when you sell them, look up the stock symbol and find out the value on
the date of his death. When they said "basis" above, they meant,
roughly, what you paid for the stock. Now, I know he bought them
through payroll, but for reporting purposes, consider the value on his
date of death as what YOU paid for them.

Chris

Thank all of you for your replys...I guess I still don't have an answer.
The only thing I can add is that I live in VA. and the stock was not a
gift . He bought them through payroll deduction so he acturally paid for
them and left everything to me in his will.
Thanks again.

Doree

"Tad Borek" <tadborek[at]pacbell.net> wrote in message
news:0PZNh.1676$Rg4.492[at]newssvr19.news.prodigy.net...
- quote -

Agreed. But there could be tracing issues (who paid for the stock, was it a
gift from one spouse to the other, etc.) - in other words, were the shares
*really* his?

- quote -

But, unfortunately, not if it was owned as joint tenants (i.e. JTWROS). I'm
really rusty on how much presumptive weight the form of registration has on
personal property, but there can still be situations where spousal property
does not get a full step up. For future planning, check into CPWROS
(community property with right of survivorship).
http://www.mbscott.com/title.htm

- quote -

Mark Freeland
BnetOnewsX[at]sbcglobal.net

Doree wrote:
- quote -

Doree,
The answer may depend on what state you live in.

The 1099-DIV from 1990, in only his name, suggests that wasn't joint
property; 1099s for joint accounts should list the joint account by
name. If so those shares were "his" and the basis of the inherited
shares is the value on the date of death.

And if you happen to live on one of the community property states (such
as CA), the same step-up in basis at death would apply, regardless of
whether it was community property or his separate property. That's an
advantage of community property, it all gets stepped-up at the death of
either spouse, not just the spouse's half-share. But that's only in
community states.

If it's joint property, you look to state law and the general rule is
that only his half would receive a step-up in basis at death, and the
remaining half (your half) maintains its old basis.

So the question is whether you think that 1099-DIV is enough evidence
that it was his property, not joint property. Or, you live in a
community property state and so it doesn't matter. Short of digging up
more documentation you might need to go on your recollection and see if
it's challenged in an audit...if the amount is at all signficant you
should get the opinion of an accountant or an attorney about the nature
of the property.

-Tad

It sounds like both your names were on the stock before he died, maybe
in a JTROS account (Joint ownership with Rights Of Survival) When he
passed, the stocks would have been transfered into your name only, and
thus, when they split, you would have gotten those too. The only
thing that involves a Date of Death balance or value, would be if you
were not on the account or stock at all, and after his death (and
probate) the stocks were liquidated (sold off and the proceeds put
into the estate) they would have been sold at the price they were
worth on his date of death.


On Mar 25, 12:37 pm, dore...[at]webtv.net (Doree) wrote:
- quote -

Doree wrote:

- quote -

If the stock was in his name and hew left it to you, you do get the
stepped up basis, to the price in 1991, which you can look up with the
stock ticker (symbol). Keep in mind, long term gain are 15% maximum, so
you won't have much to pay either way. Bob's idea (of donating and not
worrying at all about cost is great, if you are a regular donator and
this isn't more than you intended.
JOE

Doree wrote:
- quote -


Alternatively, if you are one of those folks who gives money to charity,
and if you itemize deductions on your taxes, you can give gifts of stock
instead (and keep the cash that you would have given.) That way, the
stock basis is moot -- you write off the entire value on your tax return.

Best regards,
Bob

I'm rally dumb about stock and need some help (: Here is my story...

Husband died in 1991 and left 109 and 245 shares of railroad stock.
After his death was reported, the certificates were mailed to me. They
have only my name on them.
In 1997 the stock split at 3 for 1 and I got another certificate for 708
shares with my name on them.

I've been told that I own them at the selling price on the day he died
but don't know if that is true. Also, the 109 (X3) shares MAY have had
both our names on it. I have no way of knowing since the name was
changed before they were sent to me. I did find the 1099DIV for 1990
which has only his name. Would it have both names if owned jointly?

Would appreciate any help in finding the basis for his stock. Thanks.

Doree