Benito died on May 23, 2014, bequeathing his entire $3,000,000 estate to his bro

Question

Benito died on May 23, 2014, bequeathing his entire $3,000,000 estate to his brother, Alfonso. The executor of Benito's estate validly elected to use the alternative valuation date. Benito's estate included 4,000 shares of listed stock, for which Benito's basis was $500,000. The stock was distributed to Alfonso eight months after Benito's death. The fair market values of this stock on various dates follow:

May 23, 2014 $600,000

November 23, 2014 550,000

January 23, 2015 530,000

Alfonso's basis in the stock is:

1) $500,000.

2) $530,000.

3) $550,000.

4) $600,000.

5) None of the above.

Explanation / Answer

Answers $600,000

the basis of property in the hands of a person acquiring the property from a decedent or to whom the property passed from a decedent shall, if not sold, exchanged, or otherwise disposed of before the decedent’s death by such person, be—

the fair market value of the property at the date of the decedent’s death,

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