When stock "transferred on death" what is the cost basis? The original cost of the deceased or the cost at dod

Answer 1

The value at date of death. (In some cases, you can choose to take the value six months after the date of death.) This is called "stepped up basis". It's a wonderful thing because it saves you from paying capital gains tax on the gain up until the date of death and, maybe even more valuable, means you don't have to try to find records to prove the price the deceased paid.