topic Re: Cost basis when bonds were exchanged in Investing

Cost basis when bonds were exchanged

steinar57 — Tue, 24 Feb 2026 03:16:33 GMT

In 2019 I bought some corporate bonds with a given CUSIP, we'll call it CUSIP A. In 2020, the company who issued those bonds executed a voluntary exchange offer. I chose to participate. The bonds were replaced in my brokerage account by new bonds with a different CUSIP, we'll call it CUSIP B. In 2022 I sold the entire position of CUSIP B. Does it make sense to simply use the cost of acquiring the bonds with CUSIP A back in 2019, as the cost basis when selling the bonds with CUSIP B?

Re: Cost basis when bonds were exchanged

JohnB5677 — Mon, 13 Mar 2023 14:38:38 GMT

Yes, the basis of CUSIP B will be CUSIP A original price plus any broker charges you may have incurred.

"The basis of stocks or bonds you buy is generally the purchase price plus any costs of purchase, such as commissions and recording or transfer fees. If you get stocks or bonds other than by purchase, your basis is usually determined by the fair market value (FMV) or the previous owner's adjusted basis of the stock.

You must adjust the basis of stocks for certain events that occur after purchase."

Publication 551 (12/2022), Basis of Assets

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Re: Cost basis when bonds were exchanged

steinar57 — Sat, 18 Mar 2023 17:40:50 GMT

Thanks for confirming - appreciate it!