I received GE stock as a gift from 1983-2008, getting chunks at a time at different prices. I sold some and my brokerage does not know the cost basis. What should I use?

[CatinaT1]

Do you have the paperwork from when you received the stock?  I know that may be a lot of paperwork since you have been receiving them since back to 1983, but the price the stock was when you received them would be your stock basis.  This is important to know so you do not pay more tax than you need to.

[Critter]

How do I determine the cost basis of stock I received as a gift?

The cost basis of stock you received as a gift ("gifted stock") is determined by the giver's original cost basis and the fair market value (FMV) of the stock at the time you received the gift.

• If the FMV when you received the gift was more the original cost basis, use the original cost basis when you sell. This is the most commonly-encountered situation.
• If the FMV when you received the gift was less than the original basis, and you later sold the stock for:
  • More than the original basis, use the original basis.
  • More than the original basis but less than the FMV at the time of the gift, your selling price becomes the cost basis. You won't report a gain or loss in this situation.
  • Less than the FMV at the time of the gift, use the FMV at the time of the gift.

When you enter the sale of gifted stock, make sure you select the appropriate situation when we ask if you bought the stock. We'll calculate the proper gain or loss on your taxes.

Related Information:

• How do I find a stock's cost basis if I don't know when it was purchased?
• How do I find a stock's cost basis?

[Hal_Al]

You have to report the sale on your tax return. Lacking any cost basis, the IRS will consider the entire sale amount as taxable. So, you need to make your best effort to determine the original cost basis, even if (worst case) it's a guess. Historical prices of publicly traded stocks are  readily available on the internet and should, at least, satisfy the IRS that your basis wasn't zero; just "google" “Historical Stock Prices". I use http://bigcharts.marketwatch.com/historical/. The stockholder relations dept. at the company may be able to help.