Discussion:Basis in inherited stock
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Discussion Forum Index --> Advanced Tax Questions --> Basis in inherited stock
Discussion Forum Index --> Tax Questions --> Basis in inherited stock
| 2 May 2008 | |
| This client inherited all the stock of a small C corporation when her husband died. Husband was the sole shareholder and had a total original cost basis of $10000.00 in the corporation's stock. The only asset of the corporation at the date of his death was around $350,000.00 cash, which was withdrawn by wife shortly after his death, and Corporation was dissolved. Is wife's basis for individual income tax purposes, $350,000.00 (fair market value of all corporation's assets at date of sole shareholder's death)? Also, no corporate level tax on this distribution? | |
RoyDaleOne (talk|edits) said: | 2 May 2008 |
| Fair market value as used in the estate return. | |
| 2 May 2008 | |
| Need to fill out your profile. Your facts as presented are very confusing. | |
| 3 May 2008 | |
| What about the corp tax? It looks like there were mega retained earnings in the corp. On liquidation, the corp owes tax on the gain--the old double taxation bit. Let us mourn the General Utilities Doctrine. | |
RoyDaleOne (talk|edits) said: | 3 May 2008 |
| Marcilio, the only asset was cash, therefore, the FMV is the same as the tax basis, no gain no loss no foul as they say.
No Section 333, either. "The only asset of the corporation at the date of his death was around $350,000.00 cash," | |
RoyDaleOne (talk|edits) said: | 3 May 2008 |
| Thanks, Barbara. | |
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