Your Question:
"What is my cost basis for inherited stock?"
Inherited Stock Cost Basis: Step-Up Rule Explained
How stepped-up basis works for inherited investments.
⚡Quick Answer
- •User inherited stocks, confused about cost basis
- •Category: tax | Level: intermediate
- •Applies to: US
Understanding the Problem
User inherited stocks, confused about cost basis
The Solution
Understanding this concept is key to making better investment decisions.
Read through the explanation below to clear your confusion.
Example Scenario
Situation: You purchased 100 shares at $100 on January 15, 2024, and sold them at $130 on November 15, 2024.
Analysis: Holding period = 10 months (less than 12 months = short-term)
Result: Gain of $3,000 taxed as ordinary income at your marginal rate.
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