Calculating the Cost Basis of Inherited Stock
When the original owner dies on a weekend, the math gets a little trickier.

I inherited stock from my dad, who passed away on a Saturday in 2010. I sold the shares in 2014, and I am trying to figure out the cost basis for my taxes. When stepping up the cost basis, do I use the price from the Friday before he died or the Monday afterward?
Ordinarily, you take the average of the highest and lowest quoted selling prices on the date the original owner died to come up with the cost basis for inherited stock. But if the owner died on a weekend, you do that calculation for Friday and Monday and average those two numbers, says Jerry Love, a certified public accountant in Abilene, Texas.
To track down the high and low figure for an old date, Love uses BigCharts.com. Click on “historical quotes” and enter the stock symbol and date to get the high, low and closing price and a chart of the stock’s performance on that date.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For more information about taxes for inherited stock, see Cost Basis for Inherited Stock. Also see 5 Things You Must Know About Taxes on Your Investments.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
-
Don’t Miss Apple and Walmart Back-to-School Tax-Free Holiday Savings this Summer
Sales Tax Select states host sales tax holidays during the summer. Here’s what you can purchase.
-
The Rule of Retirement Inversion
The rule of retirement inversion says that to have a great retirement, you must ask yourself what would ruin a great retirement — and then plan to avoid it.
-
Five Ways Trump’s 2025 Tax Bill Could Boost Your Tax Refund (or Shrink It)
Tax Refunds The tax code is changing again, and if you’re filing for 2025, Trump’s ‘big beautiful’ bill could mean a bigger refund next year, a smaller one, or something in between. Here are five ways the new law could impact your bottom line.
-
Money for Your Kids? Three Ways Trump's ‘Big Beautiful Bill’ Impacts Your Child's Finances
Tax Tips The Trump tax bill could help your child with future education and homebuying costs. Here’s how.
-
Key 2025 Tax Changes for Parents in Trump's Megabill
Tax Changes Are you a parent? The so-called ‘One Big Beautiful Bill’ (OBBB) impacts several key tax incentives that can affect your family this year and beyond.
-
PODCAST: National Taxpayer Advocate Erin M. Collins Wants to Help
Financial Planning Your tax dollars are at work funding a government bureau to help you deal with the IRS. Strange but true! Also, the price of Amazon is going up.
-
How to Cut Your 2021 Tax Bill
Tax Breaks Our guidance could help you claim a higher refund or reduce the amount you owe.
-
The Financial Effects of Losing a Spouse
Financial Planning Even amid grief, it's important to reassess your finances. With the loss of your spouse's income, you may find yourself in a lower tax bracket or that you qualify for new deductions or credits.
-
How to Invest for a Higher-Tax Future
Tax Breaks Use these strategies to boost your after-tax returns.
-
Talking With the Taxpayer Advocate: The IRS Is Under Stress
Financial Planning The pandemic and new stimulus-driven responsibilities are straining IRS resources.