It depends on how long you have own the stock. According to this link from Super Awesome Turbo Tax Agent IsabellaG, "If you've held the stock for more than one year, you can use the Fair Market Value of the stock. However, if you have held the stock for less than one year, it is short term capital gains property, and you can only claim your basis as a deduction." See page 11 of this IRS link. As long as you've held the property for one year, the amount that you enter for the basis will not affect your deduction."
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