Find the Stock History to Determine a Cost Basis
Stocks are risky investments that ideally result in a gain. However, you may end up losing not only your initial investment but also any earnings you made while you held the stock. Gains on the sale of stocks are taxable, and losses can be used to offset other gains or reduce a portion of your taxable income. To determine whether you have a gain or loss, you need to know your cost basis-the price you paid for the stock, adjusted for commissions, fees, dividends, capital gains and stock splits.
Instructions
Check Your Records
1. Go through your account statements and confirmations and gather information about the stocks you sold. Write down the date they were purchased, how many shares, what the purchase price was and what fees or commissions you paid.
2. Note any taxable dividends or capital gains that you were paid. The annual account statement often has data on all purchases throughout the year, and each year's Form 1099-DIV has information on taxable dividends and capital gains, as does your federal tax return.
3. Total your purchase price, fees or commissions paid, and taxed dividends or capital gains to determine your cost basis.
If You Do Not Have a Complete Account History
4. Contact the broker through whom you bought the stock, who might be able to give you cost basis information.
5. Go to the websites of the companies whose stock you purchased and check the investor relations section. Many companies display historical stock information, such as price and dividends paid on specific dates. If the company doesn't have the information, visit a financial website that provides stock price and dividend history.
6. Review the dividend history to determine the basis for any previously taxed dividends. You'll need the divided paid per share and the price per share on the dividend date. Reinvested taxable dividends add to your cost basis as well as to your total shares held.
