Thread: Cost basis Calc

Results 1 to 8 of 8
  1. #1
    Member
    Join Date
    Aug 2014
    Location
    Concord,NC
    Posts
    737

    Question Cost basis Calc

    Question for those that may have gone through this.
    I was gifted stock 30 plus years ago.
    My father worked for a company and bought a few shares which grew through dividend re-investments.

    Once I put the stock solely in my name I moved the shares into one of my online trading accounts.
    At which point the online companies did not have a clue what the original cost basis was.

    In reality it was all free to me....because i didn't pay a dime (other than taxes paid for dividends)...I just reaped the rewards of dividends and re-investments.

    1. Would the company (it's a large utility company) have the my stock holder's info from all those many years?
    2. Would the company be able to tell me original stock purchase info and for how long I've held the stock?
    3. If the above info is received...is it difficult to then calc a cost basis?

    The reason I ask, my financial adviser I'm sure doesn't want to deal calcing cost basis for something he doesn't hold for me and has suggested I gift the stock to charity. I'm "okay" with that but..... gifting $16K makes me cringe just a little.

    Tax benefits from gifting stock? A little tax info...
    Our home is paid for, we have no kids which makes for -0 deductions.

    Just wanting some feedback for those that may have experience in this.
    Thanks in advance!

  2. Stocks/Investments Moderator boneil's Avatar
    Join Date
    Jul 2010
    Location
    Aberdeen, MD
    Posts
    12,147
    #2
    I don't have an answer to your question, but why would you want to get rid of it?
    Thanos was the hero

  3. Member
    Join Date
    Jul 2018
    Location
    columbus, GA
    Posts
    174
    #3
    I have a TD Ameritrade account and you can go to historical prices and splits and enter a date and it will tell you the adjusted price of the stock on that date. Your account may have that also.

  4. Member
    Join Date
    Nov 2011
    Location
    Coral Springs, Florida
    Posts
    10,793
    #4
    When a stock is gifted you get the donor's basis but also get to use their holding period for short/long term capital gains calculations. You can gift up to a certain amount each year without the donor getting hit with a gift tax. We use to get gifted shares each year from my dad up to the limit because he had a ton of his company's stock and he could give that to us to help dilute his position and he held the rest until his death where it could be transferred at the stepped up basis so that when it was sold it was done at the date of death basis rather than having the original basis which was much lower due to the fact it was obtained through options he had. Best bet may be to see a CPA and have them provide a letter with a basis that your financial adviser can rely on. A CPA may have a program that can give a reliable cost basis. This is what I had to do when I would deposit gifted shares with my broker so that they could enter it into their system and it would appear on my tax statements.

  5. Member
    Join Date
    Nov 2011
    Location
    Coral Springs, Florida
    Posts
    10,793
    #5
    Did your dad get the stock through stock options the company offered? If so the company may have information on the basis. That was one of the tricky parts I had to deal with because my dad had to pay taxes on the exercise of the options and that increased the basis and there would be no way to calculate that based on the historical tool unless you knew the amount of taxes he paid.

  6. Member
    Join Date
    Aug 2014
    Location
    Concord,NC
    Posts
    737
    #6
    Quote Originally Posted by boneil View Post
    I don't have an answer to your question, but why would you want to get rid of it?
    I feel it could be better allocated for a better ROI.
    Not really cashing out....just re-distribution.

  7. Member
    Join Date
    Aug 2014
    Location
    Concord,NC
    Posts
    737
    #7
    Quote Originally Posted by NitroZ7 View Post
    Did your dad get the stock through stock options the company offered? If so the company may have information on the basis. That was one of the tricky parts I had to deal with because my dad had to pay taxes on the exercise of the options and that increased the basis and there would be no way to calculate that based on the historical tool unless you knew the amount of taxes he paid.
    One of his first "career" jobs back in the early 70s. I doubt they were options involved but not sure.
    I'm going to have to dig deep for more info from the company. I feel somewhat sure they can give me at least some of the info i need.
    Luckily my coworker's wife operates her own CPA business so she may be of assistance.
    Thanks for the replies, much appreciated!

  8. Member
    Join Date
    Jun 2009
    Location
    Beauregard, Alabama
    Posts
    4,171
    #8
    I think NitroZ7 is correct. Your cost-basis is the value of the shares on the date of your Father’s death.

    Your Father’s purchase price of each share should not matter.