Cost basis for stocks or cryptocurrency bought by 2 married people.

[Jimacos]

I am trying to understand something when it comes to stocks or cryptocurrency cost basis. Assume that I own X number of stocks of Google and then my wife, in her own brokerage account goes and buys Google as well, when we do our taxes where we file jointly, since these are individual accounts, my cost basis wont affect the ones of my spouse and vice versa?

Same thing applies with cryptocurrencies. If both me and my spouse have different accounts, purchasing stocks or crypto have individual cost bases although we file together.

Is that correct?

[STaxLady · Accepted solution]

Hello @Jimacos ,

Thanks for the great question!

You are correct, the basis of each investment (stock, crypto, other investment property) is calculated separately.

That being said, when filing the tax return, all of the gains and losses are totaled and result in an overall gain or loss on long-term and on short-term investments being reported. 

I hope this answers your question, Jimacos. Feel free to reach out if more information is needed for clarification.

[Jimacos]

Thank you for your response @STaxLady 

Just to make sure I understand what you are saying.

I will have my total gains or losses (independently if my spouse and I own similar stocks). Lets assume I have $300 in gains.

Then my spouse will have $400 in loses. 

The second part of your message means that when reporting we will have a total 300 + (-400) = -$100? So individually I have profits, my spouse loses, and then together a total loss of $100?

Thank you!

[STaxLady]

@Jimacos 

Yes, that is correct, there will be a result of a net gain or a net loss.

In your example, a loss of $100 would be correct.

Thanks for your follow up question. Let me know if I can be of any further assistance!