What is that basis of stock after a divorce?
October 17, 2005
Date: Tue, 27 Sep 2005
In a divorce settlement, on pre-marital stock, do you use the price of the stock or the adjusted price to figure the gain or loss?
Thanks so much for your help!
Date: Fri, 07 Oct 2005
I'm not sure what you mean by the "adjusted price". In almost all cases, the tax basis for the stock and the acquisition date will be the same as if you sold the stock during the marriage. The reason for this is that no gain or loss is recognized when dividing property in most marital dissolutions, so the old tax basis simply carries over.
For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.
Home Newsletter Archive Introducing Michael Gray, CPA Articles Tax FAQ Need Help? Other Links