Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jan 25, 2021 2:00:48 PM

Does the purchase price per share of a private (Not SEC regulated) investment matter for tax liability or is it only the total dollar amount invested that matters?

Total amount of shares that will be owned exceed the price per share and and number of shares on the purchase agreement.

0 1 228
1 Replies
Expert Alumni
Jan 27, 2021 1:38:34 PM

A "stated" purchase price for share has no effect on the tax liability you might incur when selling the stock.  The only numbers that matter are the total dollar amount you paid for the shares and the total number of shares you received in return.

 

Use these two numbers to determine the cost/share (cost basis) of the stock and your resulting profit (loss) when you sell a single share (or multiple shares).