How to figure cost basis. The brokerage was bought out by Computershare in 2011. We sold the stock in 2022 and a large portion of the sale is listed as noncovered. Thanks

Forum|Forum|3 years ago
March 13, 2023
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The stock dividends were being re-invested quarterly going back to 2003, no longer have those statements.

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DavidD66

It is up to you to track, determine your cost basis. If you have an account at a brokerage firm (Schwab, Fidelity, Merrill Lynch, etc.) , their research department can easily calculate it for you. If you don't have an account with a firm that will do that, there are websites with online calculators that will calculate your cost basis. There are free ones, and there are subscription sites. You can also look up the dividend per share paid each quarter since you bought the stock, and do the calculations yourself. You can also use a cost basis of zero. Finally, you can look up the low price that the stock has traded at since you bought it, and use that.

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garyroads53Author

Thanks for your input. I was able to find the statements and determine the cost basis for shares purchased each time there was a dividend for a large portion of the noncovered shares sold. Still have 3 questions:

1) A large portion of stock sold was a result of a stock split with no basis reported, can I use the historical data for the stock price that day to determine basis?

2) I didn't purchase the initial number of shares, it was from a divorce settlement and have no cost history. Can I use the stock price the day that I received it as the basis?

3) What box do I use on form 8949?

Thanks

AbrahamT

For question number 1 Your overall basis doesn't change as a result of a stock split but your per share basis changes. So yes, you would be able to use the historical cost of the shares adjusted for the double amount of your newly acquired shares. And now the cost of each share would be worth only half.

For question 2 you would use the fair market value at the date of inheritance (step up in basis) as the cost. As far as question number 3, you will select option B for Part 1 of the 8949 if it was short term and option E Part II of the 8949 if it was long term.

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