If the stock is received as a gift, basis is generally the basis of the previous owner or the fair market value when received. The basis of inherited stock is usually its fair market value on the date of the decedent's death. A bond that has no owner's name registered on the books of the issuing company and is therefore payable to the holder. Bequest A gift by will of personal property. A bequest is not includable in the income of the recipient.
Basis is usually the value of the property at the decedent's death.
If a bequest of money is to be paid at intervals, then to the extent that it is paid out of income from property, it is taxable income to the recipient. Bond A note obliging a corporation or governmental unit to repay, on a specified date, money loaned to it by the bondholder. The holder receives interest for the life of the bond. If a bond is backed by collateral, it is called a mortgage bond. If it is backed only by the good faith and credit rating of the issuing company, it is called a debenture.