Leroy just inherited 100 shares of stock from his grandmother, who died on October 1, 2020. The price per share was $170 on October 1, 2020, and his grandmother bought the stock for $20/share on January 2, 2006. Leroy takes over ownership with a cost basis equal to $20/share and a January 2, 2006 purchase date, but has no immediate tax liability Leroy owes no capital gains tax on the $15,000 profit, and has a cost basis going forward equal to $170/share Leroy owes capital gains tax this year on the $15,000 profit, and has a cost basis going forward equal to $170/share