In July of 2009, I bought, for my mother's account, 500 shares of BMY for $9,758, or $19.516/share. Sometime after, the opportunity was given to convert some of those shares into Mead Johnson. Her current brokerage statement shows she now has 446 shares of BMY and 34 shares of MJN. My mother recently passed away, and I need to determine the present tax basis for each security. Could someone please advise me on the tax basis on her BMY and MJN? Thanking you in advance.
You may want to check with a tax expert. As I recall there is no estate tax this year but the tax basis of inherited stock is the tax basis of the deceased. I don't believe there is a step up in value this year. Next year when the estate tax returns probably also will the step up in valuation.
Doesn't matter what you paid. you need to calculate two values, value on date of death and at 6 month hence (an option for estate taxes). Sorry about your loss. You either go with date of death valuations or 6 months later.