Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

Are you able to help me finding the cost basis for 150 shares

Customer Question
of NYSEG which I inherited...
Are you able to help me finding the cost basis for 150 shares of NYSEG which I inherited in 1992. In 1999 a stock split gave 150 shares of Energy East. All dividends have been reinvested until the merger with Iberdrola on 9/16/2008. I recently submitted all my book entry shares and have received payment for(NNN) NNN-NNNNshares and will soon receive payment for 300 certificate shares held by me.
Submitted: 9 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 19 hours by:
10/4/2008
Tax Professional: Ed Johnson, Tax Preparer replied 9 years ago
Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10,760
Experience: GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
Verified

Dear merlin,

 

When you inherit stock you get what is a stepped up basis. that is the cost basis is the FMV of the stock as of the date of death.

 

so in your case, you need to get a copy of the estate tax return and gift tax return that was used to settle the estate. You can get that by contacting the IRS or the estates executor.

 

Ask Your Own Tax Question
Customer reply replied 9 years ago
I knew that and do have that information. When the stock split 2 for 1 do you use that figure to determine the cost basis of those split shares?
Tax Professional: Ed Johnson, Tax Preparer replied 9 years ago

Dear merlin,

 

To figure the cost basis for a stock split, you have two options.

 

As of the date of the split:

 

 

Option one: Take the original cost basis (FMV as of the date of death) of all the shares, and divide it by the new amount of shares you hold to arrive at the new per share cost basis.

 

Option two: take your previous cost basis per share ) and divide it by the split factor (2:1). So in this case, you would divide the FMV per share as of the date of deathby 2 to get the new cost basis.

 

Ask Your Own Tax Question
Customer reply replied 9 years ago
Which option is the best taxwise?
Tax Professional: Ed Johnson, Tax Preparer replied 9 years ago

either option gets you to the same result. the only difference is what size numbers you work with.

 

for example

 

If you use total FMV, it would look something like this.

 

1,000 shares whose FMV at death were 10,000 dollars.

With a 2:1 stock split, you would now have 2,000 shares worth 10, thousand dollars.

So 10,000 divided by 2,000 = 5 dollars per share

 

The second method starts with the per share FMV as of time of death,

 

In our example 10 dollars per share.

With a 2:1 stock split it would be 10 dollars per share divided by two = 5 dollars per share.

 

 

Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10,760
Experience: GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
Verified
Ed Johnson and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask Ed Johnson Your Own Question
Ed Johnson
Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10,760
10,760 Satisfied Customers
Experience: GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee

Ed Johnson is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,312 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,362 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

14,120 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,652 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
My mother died in Illinois. On the federal estate tax return
My mother died in Illinois. On the federal estate tax return she has 3.9 million adjusted gross estate and 1.5 million in taxable gifts made in 2010 and 1.7 million in unused exemption from my father'… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Ied dividend and capital gains worksheet no longer
ied dividend and capital gains worksheet no longer available … read more
Carter McBride
Carter McBride
LLM
269 satisfied customers
Are the accumulated dividends on a life insurance policy
Are the accumulated dividends on a life insurance policy usually apart of the gross value listed on schedule D of form 706 or should it be reported somewhere else?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I have a stock trading margin account. So, I have dividend
I have a stock trading margin account. So, I have dividend income of $12,000 and margin interest expense of $10,000. Is the $10,000 deductible? … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I plan to declare some foreign interest and dividends
I plan to declare some foreign interest and dividends totaling about 3000 pounds in each of the last 3 years, on some of which i suffered withholding tax at source. I have not been submitting an annua… read more
taxmanrog
taxmanrog
Master\u0027s Degree
778 satisfied customers
On Social Security, received dividend on traditional IRA
On Social Security, received dividend on traditional IRA want to withdrawn funds from Roth IRA … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,095 satisfied customers
The gift tax return was due in year 2012 and 2013 and donor
the gift tax return was due in year 2012 and 2013 and donor forgot to file it. now what are the consequences for donor and receiver?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,095 satisfied customers
W, is there a amend tax return there at IRS there for me? My
Hi, my name is ***** ***** Miller, is there a amend tax return there at IRS there for me? … read more
Fred Rook
Fred Rook
Corporate Controller
BSBA
64 satisfied customers
Duke Energy damaged trees on my property in their Right of
Duke Energy damaged trees on my property in their Right of way without properly notifying me, (or anyone in the state of NC. ). They sent me a settlement agreement for damages ( $ 24,750.00 ) with a c… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,811 satisfied customers
IRS auditing 2015 Federal Return regarding reverse mortgage
IRS auditing 2015 Federal Return regarding reverse mortgage accumulated interest on 1098 for $93k. Sent Form 886-A Worksheet for Qualified Loan Limit and Deductible Home Mortgage Interest. … read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,282 satisfied customers
When qualified dividends and short-term gains are reinvested
when qualified dividends and short-term gains are reinvested in a mutual fund, are they included in the long-term gain? For example, investor buys 100 shares of mutual fund A in 2010 for $1 per share,… read more
taxmanrog
taxmanrog
Master\u0027s Degree
778 satisfied customers
Information on Gift tax return. My 100 year old mother wants
my 100 year old mother wants to gift the balance of a home loan to my brother, Balance is aprrox $35,000. What are the mechanics? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,811 satisfied customers
DO WE STILL HAVE THE HOME ENERGY TAX CREDIT FOR WINDOWS. I
DO WE STILL HAVE THE HOME ENERGY TAX CREDIT FOR WINDOWS … read more
Fred Rook
Fred Rook
Corporate Controller
BSBA
64 satisfied customers
Energy Credits - Please confirm that energy tax credits have
Energy Credits -Please confirm that energy tax credits have expired at end of 2016. Are there any credits for residential HVAC for 2017 tax year?Thanks, JW… read more
abci168
abci168
Principal
27 satisfied customers
I have a NJ estate tax return to prepare for a decedent in
I have a NJ estate tax return to prepare for a decedent in NJ. The brokerage statement has an account with the decedent and a trustee set up for her grandson under a U/W/O . Are these assets included … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
1,095 satisfied customers
What will I owe IRS on approximately 125000. I inherited
What will I owe IRS on approximately 125000. I inherited from my mother upon her passing as of April 2017? I also receive 9000 monthly from condominium owners because we own the land. I live in Hawaii… read more
taxmanrog
taxmanrog
Master\u0027s Degree
778 satisfied customers
Can a C-Corp file a "final" return with the IRS if there are
Can a C-Corp file a "final" return with the IRS if there are no longer any business operations, but the company bank accounts remain open?… read more
taxmanrog
taxmanrog
Master\u0027s Degree
778 satisfied customers
Same question on the taxation of interest and dividends (on
Same question on the taxation of interest and dividends (on mutual funds) earned inside a disclaimed portion trust ... disclaimer trust . The original owner of a trust passed and the spouse declined a… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x