Discussion:What happened to my stepped up basis?
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| - | {{ForumNewPost|UserID=Chris2lane|Date=March 31, 2009|Text=New client drops off her paperwork the other day. I'm reviewing 2007 return and the Sch. D has cost basis for Exxon stock from 1945. Taxpayer and spouse are in their mid 40s. I'm perplexed about the date so I contact client. Wife says that her father worked for Exxon before it was even called Exxon. He died in 2001. I immediately think that prior accountant missed the perceived stepped up basis. Wife says that dad died and all his Exxon shares go to his wife (client's mother). I tell client that I think I can amend 2005-2007 returns if my assumptions are correct. Well, today I talk to the broker. He tells me that dad GIFTED all the Exxon shares to his wife BEFORE he died, therefore no step up. He dies in 2001 and mother begins to gift these same shares to her children and grandchildren, therefore retaining the original donor's basis. As of last night, I was thinking that I could get my client some nice refunds, but that idea just got shot down. Oh well. }} | + | {{ForumNewPost|UserID=Chris2lane|Date=March 31, 2009|Text=New client drops off her paperwork the other day. I'm reviewing 2007 return and the Sch. D has cost basis for Exxon stock from 1945. Taxpayer and spouse are in their mid 40s. I'm perplexed about the date so I contact client. Client says that her father worked for Exxon before it was even called Exxon. He died in 2001. I immediately think that prior accountant missed the perceived stepped up basis. Wife says that dad died and all his Exxon shares go to his wife (client's mother). I tell client that I think I can amend 2005-2007 returns if my assumptions are correct. Well, today I talk to the broker. He tells me that dad GIFTED all the Exxon shares to his wife BEFORE he died, therefore no step up. He dies in 2001 and mother begins to gift these same shares to her children and grandchildren, therefore retaining the original donor's basis. As of last night, I was thinking that I could get my client some nice refunds, but that idea just got shot down. Oh well. }} |
Revision as of 15:03, 31 March 2009
Discussion Forum Index --> Basic Tax Questions --> What happened to my stepped up basis?
Discussion Forum Index --> Tax Questions --> What happened to my stepped up basis?
Chris2lane (talk|edits) said: | March 31, 2009 |
| New client drops off her paperwork the other day. I'm reviewing 2007 return and the Sch. D has cost basis for Exxon stock from 1945. Taxpayer and spouse are in their mid 40s. I'm perplexed about the date so I contact client. Client says that her father worked for Exxon before it was even called Exxon. He died in 2001. I immediately think that prior accountant missed the perceived stepped up basis. Wife says that dad died and all his Exxon shares go to his wife (client's mother). I tell client that I think I can amend 2005-2007 returns if my assumptions are correct. Well, today I talk to the broker. He tells me that dad GIFTED all the Exxon shares to his wife BEFORE he died, therefore no step up. He dies in 2001 and mother begins to gift these same shares to her children and grandchildren, therefore retaining the original donor's basis. As of last night, I was thinking that I could get my client some nice refunds, but that idea just got shot down. Oh well. | |
