October Study Question of the Month

Submit your answer to info@solomonexamprep.com to be entered to win a $10 Starbucks gift card. Continue reading

Congratulations to Megan K., this month’s Study Question of the Month winner!

Submit your answer to info@solomonexamprep.com to be entered to win a $10 Starbucks gift card.

Question

Relevant to the Series 6, Series 7, Series 66, and Series 65.

 

 

 

 

 

The cost basis for inherited securities is:

A. The same as the deceased person’s cost basis

B. The same as the price of the securities on the date that the original owner dies

C. The same as the price of the securities on the date that the new owner takes possession

D. The lower of the deceased person’s cost basis and the price of the securities when the new owner takes possession

Answer: B.

In the event that the holder of securities dies and passes those securities to one of his heirs, the new owner gets to claim the price of those securities on the deceased person’s date of death as the securities’ new tax basis.

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