fisher[at]satx.rr.com (Mark) wrote:

- quote -

Sorry, but the basis of the stock held by the trustees is
NOT the fair market value at the time of the gift to the
trust, but is the original cost basis of the stock in the
hands of the donors (i.e., the grandparents).

**Dan Evans
**I post information, not advice.

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Tax question about selling stock from within my daughter's
trust. Any pointers will be appreciated.

During the years 1992 - 1999 my parents put $20K value of
XYZ stock into a trust for my now teenaged daughter. I am
the sole trustee. The actual dates and per share value of
the stock transfers are not available due to poor record
keeping.

I file a 1041 for the trust each year to report interest and
dividend income mostly. I occasionally sell some XYZ stock.
I have filed using the "0" cost basis method (ouch) on
several prior 1041's when stock was sold.

When XYZ stock is now sold on my daughter's behalf, I am
uncertain whether I must declare the cost basis as "0" or if
I can make a good faith estimate of the value of the stock
when it was given from her grandparents and treat that
amount as the cost basis. Obviously, that would reduce the
tax liability.

Not sure what additional info will help any of you offer suggestions.

Thanks in advance,

Mark

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