[blueash]

Originally Posted by CoachKandSportsguy

..... Example would be an inherited stock which would have the price of the stock at the date of the death of the individual. Knowing that you can search for the price of the stock on that day, pick the highest of the day.

.....

finance guy

I am sure you know a WHOLE LOT more than I do about finance. I don't sign off as finance guy. But your advice on calculation of basis for inherited stock is per Mr Google wrong, and contrary to what I recalled being told when I dealt with an estate.

The correct technique seems not to pick the highest selling price of the date of death which would raise the basis and lower the gain, but rather you are to take the average of the highest and the lowest cost for the date of death, or if the death was on a holiday, calculate that figure for the open market day before and after the death.

google search using "How to determine a stock's date of death value" has many hits giving this averaging requirement. I found none saying use the biggest number you can find. I did not see any hits to an IRS paper on the issue and perhaps they have not expressed an opinion. But if no opinion why do all the financial websites suggest the same averaging?

to calculate the value of the stock on the date of death, take the average of the highest selling price and the lowest selling price of the stock on that date.