Question

9. Prior to her death Mindy bought stock for $20 per share. Mindy dies, owning the shares. Mindy’s gross estate is less than $5 million. On the date of death, a share of the stock trades on the stock exchange with a high price of $104 per share and a low price of $96 per share. Assume an estate tax return is required. what value would the stock be shown at in the return?

Answer 1

9. Prior to her death Mindy bought stock for $20 per share. Mindy dies, owning the shares. Mindy’s gross estate is less than $5 million.

Answer: To calculate the value of stock on the date of death is to taken is to taken Average of the high value on the date of death and the low value on the date of the death is the best way to value on death date. . Rosically the person sell the stock it must be Basically capital gain on the Estate assets like stock. until the person sell the stock it must be. tased. * Ob stock held for less than a year than shost term capital gain is applicable and if stock is kept for more than a year than long pestod than long term Capital gain is taxed. : As per the problem analysis, we observed that Average of high values $104 per share and lower value $96 is considered. Average price (High walue + lowed values $104+$96 2 :- $100. . In the return $100 per share value is to be shown. LAO qi