Serbinski Accounting Firms

Thanks for the reply nelsona. In case others are interested, after much searching, the only info I have been able to find relevant to the U.S. taxation of the inherited shares is the following quote from an article in a financial magazine. After describing how to determine the cost basis of the inherited shares, the author states: “OK, now you know the basis of your inherited shares, or at least how to figure it out. If your sale will result in a profit, it automatically qualifies for the 15% maximum rate on long-term capital gains, regardless of how long the inherited shares were actually owned by the decedent or you. If you sell at a loss, it will be a long-term capital loss. In filling out Schedule D, enter “inheritedâ€￾ in the space for the acquisition date of the shares. Don’t enter the date you actually received them, because that could make it look like your holding period was too short to qualify for long-term capital gain treatment.

If this is an accurate account, it seems unusually generous on the part of the government.

Flip

I am a dual U.S. and Canadian citizen who currently resides in Canada. I file taxes each year in both countries. I inherited a mutual fund investment from a U.S. estate recently. It was purchased ten years ago for approximately $5 per share US$. The cost per share of the fund on the date of death wa...