What is the name of your state?Pennsylvania.
My wife inherited stock from her brothers 401k. She took the distribution of the stock as stock. What I mean is she has a stock certificate for the shares, she did not cash in the stock. We have received paperwork from the company(GE) showing that she has assumed her brothers basis in the stock which is very low. This paperwork also shows that we have to pay tax on the basis she assumed when she inherited her brothers stock. If my wife cashed in the stock(all or part) she would have to deal with the Bank of NY witch takes care of these transactions for GE. As an example, if my wife cashed in 6000 shares of GE, the bank would charge her $910 for the transaction. My own brokerage firm would charge about $125. Now to my question. My brokerage firm will take the stock in kind, meaning they will open an account for my wife with the 6000 shares in it. She did not liquidate the stock, it was just transfered to another account. Did this in any way change the basis on this inherited stock?
My wife inherited stock from her brothers 401k. She took the distribution of the stock as stock. What I mean is she has a stock certificate for the shares, she did not cash in the stock. We have received paperwork from the company(GE) showing that she has assumed her brothers basis in the stock which is very low. This paperwork also shows that we have to pay tax on the basis she assumed when she inherited her brothers stock. If my wife cashed in the stock(all or part) she would have to deal with the Bank of NY witch takes care of these transactions for GE. As an example, if my wife cashed in 6000 shares of GE, the bank would charge her $910 for the transaction. My own brokerage firm would charge about $125. Now to my question. My brokerage firm will take the stock in kind, meaning they will open an account for my wife with the 6000 shares in it. She did not liquidate the stock, it was just transfered to another account. Did this in any way change the basis on this inherited stock?