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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 742
Experience:  Certified Public Accountant
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Question had to be reposted due to site issue My father

Customer Question

For ***** ***** only - question had to be reposted due to site issue
My father recently passed. I am the trustee of his family trust and I am the sole inheritor. Among the items in the estate are seven individual stocks that if transferred to my name and sold, would have a gross value of $35K. My wife and I are retired and have a gross annual income of ~ $80K. My original fear was that taking the stock sale proceeds would raise my AGI above the limit where I would have to give back social security money. I have recently read however that the basis for the sale becomes reset to the date of my father's passing with the majority of the sale proceeds being tax free and only the difference between the new basis and the actual stock sale price being the taxable amount. Is this correct? Are there any other tax consequences that I should be aware of?
Optional Information:
State/Country relating to question: California
Submitted: 1 month ago.
Category: Tax
Expert:  Mark Taylor replied 1 month ago.

Hi this is Mark. I am sorry for your loss. You are correct that is a step up in basis at the date of death. When did the stock become property of the trust?

Expert:  Mark Taylor replied 1 month ago.

Please let me know and I will be happy to help you.