Inherited Securities Calculator

Your Broker is Costing
You Thousands

Inherited stocks? Your brokerage likely has the wrong cost basis. We calculate what it should be—and show you the tax savings you're missing.

No signup required. Get results in under 5 minutes.

Based on IRS Pub. 551 & 26 CFR § 20.2031-2
Uses high-low average (not closing price)
$58B in annual tax impact

Real Results

See what others discovered

These examples show how incorrect broker basis leads to thousands in unnecessary taxes.

MSFTMicrosoft Inheritance
Inherited:200 shares
Broker showed:$5,200
Actual basis:$83,360
Tax savings:$11,724
PORTFOLIODiversified Estate
Inherited:12 positions
Broker showed:$127,450
Actual basis:$189,720
Tax savings:$9,340

The Problem

Your mother passes away owning 200 shares of Microsoft she bought in 2005 for $5,200. Here's what happens when you sell:

What Broker Shows

Cost basis:$5,200
If sold at $400/share:$80,000
Taxable gain:$74,800
Tax owed (15%):$11,220

Correct Stepped-Up Basis

Cost basis:$83,360
If sold at $400/share:$80,000
Taxable gain:-$3,360 (loss)
Tax owed:$0

The broker's basis is wrong. When you inherit securities, your cost basis "steps up" to the fair market value on the date of death—not the original purchase price.

Why Brokerages Get It Wrong

1.
They don't apply step-up at all. Many brokers keep the decedent's original purchase price until you explicitly request a correction. At Schwab, you must request a "Step Up Cost Basis to Date of Death" form—they don't do it automatically.
2.
They use closing price instead of high-low average. IRS regulations (26 CFR § 20.2031-2) require using "the mean between the highest and lowest quoted selling prices"—not the closing price. This alone can create a 2-5% error on volatile days.
3.
They miss corporate actions and splits. Stock splits, spinoffs, and mergers that happened after purchase but before death need to be accounted for. Many brokers handle this incorrectly.

Real example from investor forums: "Only 8 out of 26 securities have the correct stepped-up cost basis at Vanguard, despite calling at least 7 times over the last couple months."

How It Works

Three simple steps

01

Enter death date

The date determines the fair market value for all inherited securities.

02

Add positions

Enter ticker symbols and share counts, or upload a brokerage statement.

03

Get your report

See your potential savings instantly. Join waitlist for PDF reports and Form 8949 exports.

The IRS-Required Calculation

For stocks and ETFs, federal regulations require using the average of the high and low price on the date of death—not the closing price.

"The mean between the highest and lowest quoted selling prices on the valuation date is the fair market value per share or bond."

— 26 CFR § 20.2031-2(b)(1) (Treasury Regulations)

(High + Low) ÷ 2 × Shares = Stepped-Up Basis

Most brokerages use closing price (wrong) or don't apply step-up at all (very wrong). We calculate it exactly as the IRS requires, using historical high and low prices.

What You Get

Start free, upgrade when ready

Free

Quick Estimate

  • Calculate up to 3 positions
  • See estimated savings range
  • Upload brokerage statements
  • No account required

Waitlist

Full Access

  • Unlimited positions
  • Exact calculations to the penny
  • PDF reports for your CPA
  • Form 8949 CSV export

Stop overpaying taxes

Find out if your broker's basis is wrong—it probably is.