For U.S. taxpayers, property received as a gift or inheritance is subject to special tax rules with regard to determining cost basis and holding period.  Captools/net's automatic estimated tax calculation may not accurately reflect these rules in all regards. The user should review and understand these tax rules or consult their tax advisor before relying upon program results.

 

The following procedure is valid, however, for most cases:

 

a) Enter a RCV (receive) transaction using the market value of the property on the date received in the Amount field:

 

1) Inherited Property - Use the day after the decedent's death as Aux Date field.  Place "IRS" in the "Trade Counter Party" field.  Select the "Aux Amount" field and click on the "calculator" icon or the "Data/Compute Field" command.  The Aux Amount field should fill with the value of the received shares on the deceased date of the bequetor as per IRS rules.  (e.g. average of Friday & Monday if over weekend)

 

2) Gift Property - Use the date the property was acquired by the donor, unless the market value upon receipt was less than the donor's cost basis. In this case, use the day after the date of receipt as the transaction date.

 

b) Enter a SLL transaction upon sale of the property.  Review the tax rules for special provisions which might affect your situation. When necessary use a manual tax entry.