If you ask any accountant orbusiness owner, calculating the cost of something is tricky and ever-changing.And when figuring out the â€œcost basisâ€ for stock, one is often left scratchingtheir head. Needless to say, â€œcost basisâ€ is incredibly important when it comestax time, especially if it was a bequest or gift.
So what if you inherited stock?Itâ€™s fairly common, but how do you determine the value for that? Thatâ€™s thecomplicated calculus of the â€œcost basis.â€
If you think about it, stockrepresents a value that is forever changing on the basis of the market itself.Those ups and downs of the market can make it a bit difficult to calculateactual gain over the life of one individual. The wrinkle of how to count forthose changing values when stock passes from the hands of that one individualto another makes the wrinkle more challenging.
For a basic introduction toâ€œcost basisâ€ and the value of inherited stock, consider reading a recent Kiplinger article titled â€œCost Basis for Inherited Stock.â€
Planning for your estate means understanding what yourassets are and what their value is to your heirs. Accordingly, theunderstanding of cost basis is imperative to you and your heirs. At Idaho Estate Planning we are theexperts you need to know and trust. Work with us and we'll put together a planthat works for you and your loved ones. Remember, good planning is no accident.