How long must I hold stock I inherited before I qualify for long term capital gains?

Answer 1

you can sell it the moment you get it. Inherited stock automatically qualifies for long-term capital gains. And your cost basis for the stock is the value of it on the date of the person's death.

Answer 2

The cost basis is simply the value of the security on the date of the person's death who bequeathed that security to you. (The accountant lingo for this is "when the stock was inherited, its cost basis was stepped up to fair market value on date of death".) The easiest way to get this is probably to look in a library's archive (probably on microfiche or CD-ROM) of the Wall Street Journal or the New York Times. Don't forget about stock splits while doing the research.
In rare cases, the executor will choose to use an "alternate valuation date" instead of date of death. The alternate valuation date, always 6 months after death, can be chosen only when it will reduce the estate tax, and if chosen, must be used for all property of the estate. An executor who makes this election should notify the heirs of the value used.

Note that when figuring capital gains taxes, inherited property is always long term, per se. In fact if you glance at Pub 550 it asks you to not use an acquisition date for inherited property but to write "INH" to indicate it is inherited property.

Answer 3

Inherited immediately qualifies for long term rate. For basis on sch D put down INH.