Inherited price question?
How would you recommend the entry of securities inherited due to death? After all the legal transfer, the investment company provides the TRANSFER IN information (shares/price), BUT the actual price is determined at death for tax purposes. Is there a way in MD to account for this? Changing the transfer date to back date it and the price then messes with the transferred value, which is determined after all the legal junk.
So if the transfer showed $1000 being inherited with stock ABC at $10 (100 shares), that is one price. But the actual, taxable price was $20, how do I account for this? I got 100 shares @ $10/share, so I can't say I got 50 shares (statements won't match), nor can I say I paid $20/share (value is now $2000).
I may just have to account for this in the MEMO section and deali with it once the security is sold, but looking for any other insights.
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1 Posted by dwg on 12 Jan, 2026 09:19 PM
If the taxable price was $20 per share then the inheritance was valued at $2000, the $10 sounds like the cost price to the original purchaser which is not relevant to you.
You cost price for you sounds like it shoud be 100 shares at $20 per share total value $2000.
2 Posted by dwg on 12 Jan, 2026 09:20 PM
P.S. With an inheritance, your cost price is normally taken to be market value at the time of inheritance.
3 Posted by monty on 12 Jan, 2026 11:01 PM
Yes, that is my point. But after the legal stuff, it got transferred at the price much later than the date of death. The attorney says that the inheritance is at the time of death (market value then).
Monty
On Jan 12, 2026, at 14:21, dwg <[email blocked]> wrote:
4 Posted by dwg on 13 Jan, 2026 01:13 AM
I do not see any real issue then.
If there is a difference in value between dates then you adjust the total amount with a miscellaneous adjustment transaction, using a suitable category. You are really just accounting for timing differences. The timing difference amount will be reflected in the Capital gain/loos amount if/when sold.
5 Posted by monty on 13 Jan, 2026 03:35 AM
The issue is when the security is sold. MD will report a value that is not relevant at all for tax purposes.
If you are saying for me to simply use a spreadsheet for accounting, that is what I’m already doing.
What I was asking is if there was some way to ge
6 Posted by dwg on 13 Jan, 2026 09:13 PM
You enter a transaction into Moneydance that reflects the true position i.e. the legal/taxation position. That gives you correct data.
If you manually enter data, no problem as you can ignore what the Investment house provides.
If you are working with downloads, keep the downloaded transaction but zero out quantity and amount. That will prevent more downloads but provide a record of when the security was actually transferred.
I have to allow for date differences in any share transactions I do, the tax date is the trade date, but the settlement date is these days +2 days
7 Posted by monty on 13 Jan, 2026 09:28 PM
I am so sorry but I just don’t get this.
As my previous example stated, I’m not sure how to manually enter the data.
Date of Inheritance (date of death) - 2/22/25
BUT, courts and lawyers didn’t approve the transfer of funds until 11/1/25. V
So they have in the transfet document said you have 100 shares @ $10/share on 11/1/25 = $1000
On 2/22/25 the actual price was $5.
8 Posted by dwg on 14 Jan, 2026 01:07 AM
So the transfer document shows the number of shares and their value on that date Nov 1, however the record date and financial date for the shares is 22 Feb.
So the financial date is what is being looked at, and that is also the tax date, so the buy is as that date in your records and the market value on that date, that is what the tax man is interested and would be deemed the "purchase" date i.e. the date you have benefitial ownership from according to them.
The November date from a financial viewpoint is only relevant if you are downloading data that you import and it has a transaction for it, then you need to edit the transaction to get rid of quantity and amount, at that date you only have an unrealised capital gain. Otherwise this date is just an administrative one.
9 Posted by monty on 15 Jan, 2026 10:23 PM
Got it.
It just doesn’t balance with the statements then as they show what was invested at the latter date. As my previous example indicated:
10 Posted by dwg on 15 Jan, 2026 10:37 PM
The investment house probably just shows the information of when the transfer was enacted, any legal/taxation date is not their problem. Mind you they should know as generally they have to be provided with the information through a death certificate, probate information etc.
11 Posted by monty on 16 Jan, 2026 12:37 AM
You have been very patient with me and I appreciate it. You are 100% correct. The company, PGIM (Prudential) finally sent a letter telling me the i