Options cost basis at time of death

[IRaF00l2]

@aj485

FMV could be the closing price, an average of the open and close, an average of the high and low for the day, or some other reasonable calculation that you would feel comfortable explaining to the IRS.

I wasn’t aware there were other methods for determining FMV. Good to know.

@aj485

If the FMV of the stock as of the date of death is lower than the original owner’s basis, the basis will remain as the original owner’s basis.

(Note - an alternative valuation date can also be chosen.)

Also wasn’t aware that you could using an alternative valuation date? Can you expand on that, i.e. what circumstances would it be beneficial to do that?

AJ - thank you much for your contributions to these posts.