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    brodhagen@msn.com's Avatar
    [email protected] Posts: 2, Reputation: 1
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    #1

    Apr 19, 2006, 09:32 PM
    Tax credit for worthless stock inheritance
    A worthless stock is part of my inheritance. Any tax value?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 20, 2006, 12:15 PM
    Probably not to you. It could have been declared on the fiduciary return by the estate (assuming the estate is large enough to file a fiduciary return).

    The stock assumes the FMV at time of death, which was probably zero. That means you cannot dispose of the stock and get a capital loss.
    brodhagen@msn.com's Avatar
    [email protected] Posts: 2, Reputation: 1
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    #3

    Apr 21, 2006, 06:00 PM
    Quote Originally Posted by AtlantaTaxExpert
    Probably not to you. It could have been declared on the fiduciary return by the estate (assuming the estate is large enough to file a fiduciary return).

    The stock assumes the FMV at time of death, which was probably zero. That means you cannot dispose of the stock and get a capital loss.
    The stock is part of an account which is joint with the right of survivership. We think of it as inherited because my then 88 year old mother originally made the investment. (I am brand new to this posting stuff so I asked a very general question, initially.) Does this change things? The account was changed to the joint account before she died at 94.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #4

    Apr 21, 2006, 07:58 PM
    Even if it's a joint account, it's STILL her stock. My original answer applies.
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