## Determining cost basis of gifted stock

The first step to figuring out your cost basis is to determine when your shares were purchased. That can be tricky, especially if it was a long time ago or if the stock was a gift or came in the Your Cost Basis: How to Calculate It and What It Means If you sell and realize a loss, the basis is either the giver's basis or the value of the stock at the time of the gift, whichever is

If your best estimate is a date range rather than a specific date, use the historical prices at the start date and end date of that time frame to come up with an average stock price for that time period. Make sure you keep a record of your calculation in case the IRS wants to know how you came up with the cost basis. Determining cost basis of gifted property involves going back in time to see how it was originally acquired. Your cost basis in the land depends on how your grandfather acquired it before he gifted You can calculate your cost basis per share in two ways: Take the original investment amount (\$10,000) and divide it by the new number of shares you hold (2,000 shares) to arrive at the new per share cost basis (\$10,000/2,000=\$5.00). Take your previous cost basis per share (\$10) and divide it by Cost basis is the original value of a security, which typically represents its purchase price plus other costs you paid (such as commissions and fees) and any adjustments such as dividends and