Today TaxMama hears from Cindy who tells us, “I was gifted stock over several years. Now I am getting ready to sell the stock. Is my cost basis the original cost for which the stock was purchased? Or is it the value of the stock at the time of the gift?”
Yes, you’re right, the basis is the original cost.
So, see if you can get that information from the person who gifted you the stock.
I know it’s tacky to tell someone what a gift costs, but…when it comes to investments, it’s a very generous gesture to include a certificate with the gift showing the date(s) of purchase and the basis for each batch of securities – just in case the generous donor is not accessible when you get ready to sell it.
And remember, you’ll find answers to lots of questions about the basis of assets and other tax information, free. Where? At TaxMama.com[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips. Please click on the subscribe link and join us.]
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