HOw do I figure basis on stock sold?

[oakparkrobert72]

I acquired 50 shares of ABC stock for $2000 in 2001.  In 2011, XYZ bought the company and paid me $10 per share and gave me .80 per share of stock in the company.  In 2016, QRS bought the company and sold my 40 shares for $2300.  What is my basis and my gain?

[MichaelL1 · Accepted solution]

Ok, the stock cost you $2,000 back in 2001.

You did get $500 in 2011, so if then the basis goes to $1,500, and it was sold for $2,300 so gain is $800.

You use the original date back in 2001 for purchase date and it is all Long Term gain which is more favorable tax treatment.