Cost-Basis for Gifted Shares of Stock
Receiving a gift of stock from a family member can become difficult when you decide to sell it. The tax on capital-gains due from the sale of stock is determined on what the original owner paid for the shares, along with mergers, spinoffs and stock splits that may have occurred since the purchase. Sometimes, however, finding the original basis can be made more difficult with time. Inheriting shares is significantly easier because the basis of the stock is based on the stock value at the time the individual who bequeathed it died. To solve the mystery of the original basis of stock, look at family archives for original investment statements. The library or internet may even have some clues. Even a copy of an original bank statement showing the amount the shares were purchased may help in some cases. If you plan on gifting shares of stock, make sure to give the cost-basis information too.
To learn more about this article, visit Tips for Solving the Cost-Basis Mystery .
For more information, please contact Wood, Atter & Wolf, P.A., in Jacksonville and Ponte Vedra Beach, Florida.
