Inherited stock

[imjulier]

Hey-

Just a quick question.  Client will inherit stock from mother that she inherited from her husband when he died.  There was estate tax paid at the time.  Mother is now below the threshold for estate tax. Does son still get step up in basis for the inherited stock?  I think yes but if anyone knows any different, please let me know. 

 

Thanks,

Julie

[Jack from Ohio]

Hey-

Just a quick question.  Client will inherit stock from mother that she inherited from her husband when he died.  There was estate tax paid at the time.  Mother is now below the threshold for estate tax. Does son still get step up in basis for the inherited stock?  I think yes but if anyone knows any different, please let me know. 

 

Thanks,

Julie

Yes.  Stepped up basis.  Don't overthink it!

[michaelmars]

and its long term even if sold on the day he gets it.

[kcjenkins]

Yes, he's inheriting from Mother, so how she acquired it, and what her basis was, is irrelevant.   Only relevant if she gifted it to him while alive.  

[imjulier]

Thanks to all for your responses.  Confirms what I was thinking but Jack was right, I was over-thinking it.