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[Rhodie Ranch]

Dad was smart for his children. He probably had everything in a trust, which avoids probate. I "think" that your cost basis of the stocks will revert to the date of death, so that any gains above that might be taxable. I'm not sure, but if you dad employed a lawyer to draw up his trust, then he can advise you (for a fee of course). Oh, and if any of those stocks which were gifted to you, have dividends, please make sure you request them, unless your Dad has them reinvesting them right now since the market is wonky.

 

[Ridgerunner]

as for finances dad being an accountant all his bills were paid up except for hospice which my sister paid for and we will pay her back....but dad being the smart one set up all his accounts were we would not have to pay little to no taxes, going to leave my portion of the ira with his financial broker since reviewing the growth of it over the years, the last 3 years it has been 10%,this is a no brainer since im only 2.5 year from where i will need to start taking distributions.

Didn't realize you were that old but we'll still get along as long as you respect your elders.

Be a bit careful when you take that first distribution. There is a trap waiting for you. The rules allow you to wait a bit to take the first one but you may wind up having to take two in one tax year. That might kick you up to a higher bracket. Not sure how your Dad's IRA works with your taxes though.

The way the market has been growing the last few years even a dummy can make money. Maybe a dummy can make more money than others because they take higher risks. At my age my main goal is not to make a lot of money when the market is doing well, though that is nice. My main goal is not to take a huge hit when the market crashes.

 

[6884]

Sorry to hear of your loss Major, my condolences to you and your family.

 

[majorcatfish]

Dad was smart for his children. He probably had everything in a trust, which avoids probate. I "think" that your cost basis of the stocks will revert to the date of death, so that any gains above that might be taxable. I'm not sure, but if you dad employed a lawyer to draw up his trust, then he can advise you (for a fee of course). Oh, and if any of those stocks which were gifted to you, have dividends, please make sure you request them, unless your Dad has them reinvesting them right now since the market is wonky.

no trust, no probate not connected to estate. yes all account are frozen from dod which you are right if there are gains yes will be taxed on them or if theres a loss im out money, the stocks we 4 kids were the benefactors. so each of us can do whatever we want...

 

[Rhodie Ranch]

You're 2.5 years away from 70.5 years old, which is the Required Minimum Distribution age (RMD)? OMG>>>>>>You're an old dude!!! hahahahaha (says she who is 2 years from SS at 66 and 3 months)

 

[Rhodie Ranch]

"You are not liable for taxes on the inherited value of stocks you receive from someone who died. The estate of the deceased person takes care of any tax issues, and once you have received stock as part of an inheritance, the stock is yours without any taxes due. However, you can become liable for taxes if you sell your inherited shares."

Basis Step Up
When you inherit stock, the cost basis on the shares changes. Instead of using the cost that the former owner -- the decedent -- paid, your cost basis is the share value on the date the former owner died. This "step up" in cost basis can be a tremendous advantage if the shares were purchased at a low price and have increased significantly in value. As an example, the person who left you the shares paid $5,000 for them. On the date of death the stock was worth $50,000. Your cost basis is the $50,000, and the $45,000 gain from the original purchase will not be taxed.

Tax Gain or Loss
You do not have a taxable capital gain or loss until you sell your inherited shares and have a realized value from which to calculate whether you made a profit. If you sell the stock for more than your stepped-up basis, you have a gain equal to the sale price minus the basis. If you sell it for less than your inherited basis, the result is a capital loss, which you can use as a tax write-off against other investment gains or other income. You report a capital gain or loss on your income tax return for the year the inherited stock was sold.

 

[Rhodie Ranch]

Lets just say:

So Dad bought General Electric over the years. Its had its glory days and now its dump days (infact it was delisted and their dividend is one penny per share). Say there are 4,000 shares of GE for each of you kids. It doesn't matter what Dad bought them for all those years. Now the cost basis for your personal 4K shares is the value of the stock at the time of Dad's death, March 17. If you sold all the shares, at a gain from this past March 17th, they you'll have some capital gains that are taxable. If you sold all the shares, at a lost from this past March 17th, then you'd get that money and would have your CPA account for that loss on your taxes, at a rate of $3000 per year. The rest of the loss is carried over year to year.

 

[Rhodie Ranch]

Reach out. None of us are CPA's, enrolled agents, financial advisors, or lawyers. But we can put things in simple terms, as some of us have gone thru this. Sadly...

 

[majorcatfish]

Didn't realize you were that old but we'll still get along as long as you respect your elders.

Be a bit careful when you take that first distribution. There is a trap waiting for you. The rules allow you to wait a bit to take the first one but you may wind up having to take two in one tax year. That might kick you up to a higher bracket. Not sure how your Dad's IRA works with your taxes though.

The way the market has been growing the last few years even a dummy can make money. Maybe a dummy can make more money than others because they take higher risks. At my age my main goal is not to make a lot of money when the market is doing well, though that is nice. My main goal is not to take a huge hit when the market crashes.

oh yes have been in the "dont trust a fart club" for a while, need to make a correction have 12.5 years till hitting 70.5 years... dang dyslexia...
after reading over the charts that broker sent even after the last big crash dad bounced back quickly.... yes the stock market is a very dangerous gamble personally think dad found the right financial advisor to manage his money, he has 13 stocks in the account some have been buffers, some given to him when his dad passed, a few have been holy sh!t in 9 years..

so yes invest with the right person and dont do anything brash and you should be sitting fine when it's time to retire.....

 

[majorcatfish]

Lets just say:

So Dad bought General Electric over the years. Its had its glory days and now its dump days (infact it was delisted and their dividend is one penny per share). Say there are 4,000 shares of GE for each of you kids. It doesn't matter what Dad bought them for all those years. Now the cost basis for your personal 4K shares is the value of the stock at the time of Dad's death, March 17. If you sold all the shares, at a gain from this past March 17th, they you'll have some capital gains that are taxable. If you sold all the shares, at a lost from this past March 17th, then you'd get that money and would have your CPA account for that loss on your taxes, at a rate of $3000 per year. The rest of the loss is carried over year to year.

oh yes a cpa is in the works have an appointment april 20th....