Hi. I’ve inherited a small parcel of shares and want to capture this in Sharesight. As an inheritance they come to me as an in specie transfer. Do I enter that with a purchase price of $0? How do I reflect the cost base?
@prang welcome to the community!
So there would be two things to consider here, one is the cost base of your inherited shares and this should be something you should consult with a tax consultant/accountant.
Once you determine your cost base, to enter these in Sharesight, add in a manual trade for an opening balance. The opening balance date is the date you received the inheritance, with the cost base being what was determined above.
It’s not clear what country you are in. Each country has its own specific rules, so you need to learn them yourself, by googling the question and your country name. Many countries have quite detailed information on how to deal with inherited assets on the tax authorities website.
For example, the following is a section of theUK’s HMRC guidance on the topic:
“When a person dies there’s no CGT charge. Instead there are special rules. In broad terms, the assets which were owned by the deceased at the date of death (including any joint interests which in effect pass immediately to the survivor(s)) are treated as though they had passed to the personal representatives or other person to whom they pass by law at the date of death, at their market value on that date. When the administration of the estate has been completed and the assets remaining in the estate are passed to the legatees, they’re treated as though they had passed to the legatees at the date of death at their market value on that date.”
So based on my previous post, it looks like you should enter them based on the value at the date of death - at least if you are in the UK.