cientax Posted September 27, 2007 Report Share Posted September 27, 2007 Have a client that received stock from a trust when he turned 31 years of age. Once the stock was distributed, he started selling the shares. Some of the stock was acquired and placed in trust starting in 1992 thru 2000. We have the cost basis when it was acquired and placed in trust. He started selling the shared beginning in 2000 when he turned 31. Q: Does he have any basis in the stock? If so would we use the original cost basis or do we use the FMV of the stock when it was distributed to him. He has not filed for 2000, 2001, and 2002 and IRS has done SFR for each of those years. Quote Link to comment Share on other sites More sharing options...
Maribeth Posted September 28, 2007 Report Share Posted September 28, 2007 His basis in the stock is the same as the basis that the trust had in the stock. It is not FMV at the time of distribution. Maribeth Quote Link to comment Share on other sites More sharing options...
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