Selling stock. Paper not live cattle.

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Well stated Katpau !

@moses388
Katpau is correct but I am willing to look at anything you can find in writing about cost reverting back to original.
The only other basis I am aware of is stated above when filing an estate Tax return you can use an alternate cost basis which is usually 6 months after the date of death.
 
Kenny
Went back and read your posts from beginning and wanted to clarify a few things. Not knowing the exact qty of shares and how much they may have increased or decreased makes it very hard to give you a correct answer. Also not knowing the laws of your state as far as estate taxes.or requirements to file .You will (probably) have to hire an accountant to prepare the estate tax return as this needs to be done prior to your personal return. I would not wait because he will ask a lot of questions and require a lot of backup to complete this. If the stock paid out any dividends there should have been an estate return filed every year since he died and the IRS may require this. Are you the Fiduciary? Have you heard that word? It mainly just means that you are in charge of filing and signing the estate return and dividing the income and deductions between you three. It will gather all that and at the end kick out a 1099 for each of you showing amount of income to report. It does not give you a basis but I would strongly urge all of you to use the same basis. Thats the simple of it. It can get worse if you were required to file every year before distributing the estate because then every one of yours and their returns would require to be amended to catch up with the estate. his creates a ream of paper and it all has to be documented. To me that is a bigger problem than the ss or medicare tax. I would inform them that you require x amount up front (after getting a quote from accountant) to pay for all this work. When you each get a 1099 it is not earned income but instead a stock sale showing the basis as Inherited. This does two things--automatically goes to LT cap gains AND
 
Kenny
Went back and read your posts from beginning and wanted to clarify a few things. Not knowing the exact qty of shares and how much they may have increased or decreased makes it very hard to give you a correct answer. Also not knowing the laws of your state as far as estate taxes.or requirements to file .You will (probably) have to hire an accountant to prepare the estate tax return as this needs to be done prior to your personal return. I would not wait because he will ask a lot of questions and require a lot of backup to complete this. If the stock paid out any dividends there should have been an estate return filed every year since he died and the IRS may require this. Are you the Fiduciary? Have you heard that word? It mainly just means that you are in charge of filing and signing the estate return and dividing the income and deductions between you three. It will gather all that and at the end kick out a 1099 for each of you showing amount of income to report. It does not give you a basis but I would strongly urge all of you to use the same basis. Thats the simple of it. It can get worse if you were required to file every year before distributing the estate because then every one of yours and their returns would require to be amended to catch up with the estate. his creates a ream of paper and it all has to be documented. To me that is a bigger problem than the ss or medicare tax. I would inform them that you require x amount up front (after getting a quote from accountant) to pay for all this work. When you each get a 1099 it is not earned income but instead a stock sale showing the basis as Inherited. This does two things--automatically goes to LT cap gains AND
2nd pg
if there is a loss you can use it against your tax return up to 3000 a yr until used up/ It does not have to be used against stocks only. Thats the simple of it. I would start now. Any tax accountant you talk to don't hesitate to ask their experience with estates and ask for a price structure don't hire anyone on price alone ! Believe me there are a lot of vultures out there who will lie their way thru a few months and then hand it back to you and say they cant complete it with the info you provided and keep your money. Experience counts right here. Holler if I can help
 
Kenny
Went back and read your posts from beginning and wanted to clarify a few things. Not knowing the exact qty of shares and how much they may have increased or decreased makes it very hard to give you a correct answer. Also not knowing the laws of your state as far as estate taxes.or requirements to file .You will (probably) have to hire an accountant to prepare the estate tax return as this needs to be done prior to your personal return. I would not wait because he will ask a lot of questions and require a lot of backup to complete this. If the stock paid out any dividends there should have been an estate return filed every year since he died and the IRS may require this. Are you the Fiduciary? Have you heard that word? It mainly just means that you are in charge of filing and signing the estate return and dividing the income and deductions between you three. It will gather all that and at the end kick out a 1099 for each of you showing amount of income to report. It does not give you a basis but I would strongly urge all of you to use the same basis. Thats the simple of it. It can get worse if you were required to file every year before distributing the estate because then every one of yours and their returns would require to be amended to catch up with the estate. his creates a ream of paper and it all has to be documented. To me that is a bigger problem than the ss or medicare tax. I would inform them that you require x amount up front (after getting a quote from accountant) to pay for all this work. When you each get a 1099 it is not earned income but instead a stock sale showing the basis as Inherited. This does two things--automatically goes to LT cap gains AND
She died in 2009. All these numbers are approximate. At that time there were 5000+ shares and worth $19. Afterwards the shares split 2 -1 so over 10,000 shares. Over the years before she died there were several stock splits so the initial cost of the stock is kinda a grey area.
Kroger (KR) has had several stock splits in the past, including:
July 14, 2015: A 2:1 stock split
June 29, 1999: A 2:1 stock split
April 23, 1997: A 2:1 stock split
October 1, 1986: A 2:1 stock split
May 28, 1979: A 2:1 stock split
some of the initial stock was bought in 1975. She bought 1 share of stock every paycheck for years.
All dividends since the beginning went back into the account and bought more shares. No dividends ever taken so not taxed. Dont ask me how that works. Last statement showed approximately 10,300 shares. It closed yesterday at $62 +. Its still in the estate name. Yes i have talked to a CPA and he will handle it. But i want to know what questions to pose.
I was appointed the execuator of the estate. I won't make that mistake ever again.
Thanks for all comments.
 
@moses388
Katpau is correct but I am willing to look at anything you can find in writing about cost reverting back to original.
Disregard message #33. I went back to articles I read, but could not find that information about cost basis.
 
Oh im definitely going to do that. Just hoped some of the smart people on here had ran into this already. Gonna have to pay a lot of tax on the profits anyway but dont want to loose the SS also.
I am 68 and retiring this spring. My age allowed me to start drawing at 66 7 months full ss and keep drawing my current salary. I assume you retired at 65 and that's the reason you are penalized?
 
couldn't you all open an account with the same brokerage and then have the stocks split up into each account. That way if one of you don't want to sell your share of the stock you don't have to.

That is what was done with my grandparents stock account. If I remember it work fairly well.
My sister was the executor of Dad's estate. That is what she did. Dad died in 2014. Because of some issues with his will and his second wife we couldn't sell until after she passed. That was in 2018. I don't know what the others did but I sold mine in 2018 with no issues.
 
I am 68 and retiring this spring. My age allowed me to start drawing at 66 7 months full ss and keep drawing my current salary. I assume you retired at 65 and that's the reason you are penalized?
I retired at 64. But you will find out there actually is a limit to what you can make until your 70. After 70 it doesn't matter. You should have gotten a letter telling you about the limit without being penalized. At full retirement age my limit was something like $60,000. At 65 mine was like 19,000.
 
She died in 2009. All these numbers are approximate. At that time there were 5000+ shares and worth $19. Afterwards the shares split 2 -1 so over 10,000 shares. Over the years before she died there were several stock splits so the initial cost of the stock is kinda a grey area.
Kroger (KR) has had several stock splits in the past, including:
July 14, 2015: A 2:1 stock split
June 29, 1999: A 2:1 stock split
April 23, 1997: A 2:1 stock split
October 1, 1986: A 2:1 stock split
May 28, 1979: A 2:1 stock split
some of the initial stock was bought in 1975. She bought 1 share of stock every paycheck for years.
All dividends since the beginning went back into the account and bought more shares. No dividends ever taken so not taxed. Dont ask me how that works. Last statement showed approximately 10,300 shares. It closed yesterday at $62 +. Its still in the estate name. Yes i have talked to a CPA and he will handle it. But i want to know what questions to pose.
I was appointed the execuator of the estate. I won't make that mistake ever again.
Thanks for all comments.
The easiest for all: distribute the stocks proportionally. Let each one decide when to sell. Selling a little each year will have less impacts and he distribution will have less tax consequences as a one year slam.
 
I believe as mentioned the best thing to do and what my dads broker did was to make all the heirs open an account and have the proceeds split into each account according to the will or to the beneficiaries of he account if they are listed.
 
Need the date also Kenny.
And you all will have to sell at same time because of your circumstances with the estate. If she would have had it in a trust you each would have been given the distribution on the day of death and could have sold or retained the stock`
I will PM you the date in a few minutes.
 
I believe as mentioned the best thing to do and what my dads broker did was to make all the heirs open an account and have the proceeds split into each account according to the will or to the beneficiaries of he account if they are listed.
That's another issue. No Will was found. My dad and mom both died in a house fire and if there was a will it was never found. It could have burned but a will was never mentioned by either parent.
It has increased in value a lot and i would love to leave my part there in stock but was told by an estate lawyer that it had to be sold and distributed and I could buy back the stock with my share. If i sell i will probably not buy back but buy some more land instead.
 
I remember the house fire well as I was going to work that evening, and a firetruck was sitting at the bottom of Wilson Hill, and I stopped and ask what was going on.

Just an ideal but can't you roll over your part in something like a Roth IRA and take it out a little at a time to avoid some of the tax.
 
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