Partner’s father purchased NVDA at 14.94 per share when USDJPY was 102.61, and passed away when NVDA was 128.44 and USDJPY at 158.11, and it seems that inheritance tax is based on rates and stock price AT THE TIME OF DEATH, even if estate can’t be resolved and stock cannot be obtained at that time. Now stock is all over the place, and USD rate is plummeting, and so inheritance tax is going to be calculated at absolute peak while it is totally unrealized. It is also my understanding that inheritance tax paid can only be added to cost basis of original purchase price and exchange rate for the additional calculation of income tax. Is this true? What are we missing here? In the end, effective tax rate will be close to 50% if I am calculating correctly. Is there specific liability to lock in those prices and exchange rates to time of death?
Sorry if I'm not allowed to ask this here, but seeking to understand if this is generally correct or there is something I'm missing. Thanks.
by CAMT53