Robin inherits 1,000 shares of wal-mart stock from her aunt in 2017. according to the information received from the executor of her aunt's estate, robin's adjusted basis for the stock is $55,000. albert, robin's fiancé, receives 1,000 shares of wal-mart stock from his uncle as a gift in 2017. his uncle tells albert that his adjusted basis for the wal-mart stock is $7,000. what could cause the substantial difference in the adjusted basis for robin's and albert's respective 1,000 shares of wal-mart stock?

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Business

Chippy

10 August, 08:49

Robin inherits 1,000 shares of wal-mart stock from her aunt in 2017. according to the information received from the executor of her aunt's estate, robin's adjusted basis for the stock is $55,000. albert, robin's fiancé, receives 1,000 shares of wal-mart stock from his uncle as a gift in 2017. his uncle tells albert that his adjusted basis for the wal-mart stock is $7,000. what could cause the substantial difference in the adjusted basis for robin's and albert's respective 1,000 shares of wal-mart stock?

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Rowan Jones · Answer 1

Answer: For inherited property, the basis is a new basis (i. e., fair market value on the date of the decedent's death unless the executor of the estate elects the alternate valuation date and amount), also known as "stepped-up basis." The $55,000 adjusted basis for Robin's Wal-Mart shares appears to be the fair market value of the stock at the date of her aunt's death.