Solved: Stock Cost Basis
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Level 1

Stock Cost Basis

Hello, I am attempting to determine cost basis for a share of stock that was gifted to me from a previous employer in November of 2013. The broker that originally handled this has since sold the the business to another firm which complicates this a bit. The new firm has indicated that this is non covered but it seems to me from what I have read that this would be a covered equity since it was awarded after 1/1/2011. True?

 

In the event I cannot get the cost basis from either firm, how do I determine that? The share price was approximately $65 when awarded to me and $162 when I sold it in 2019. Would the cost basis be the stock price at the time of sale since I didn't purchase it?  The value when it was gifted to me?  Can the broker commission be subtracted to reduce the cost basis?  Educate me please.  Thanks in advance.

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Employee Tax Expert

Stock Cost Basis

Yes - your cost basis is the stock price at the time of the gift.  You can usually find historical stock prices on the company's website.  If there were brokerage fees to you at the time of the gift, you can add them to the basis.  Brokerage fees involved in selling the stock can be subtracted from the sales price. 

 

Perhaps your stock is considered "noncovered" since it was given to you and not purchased by you.

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2 Replies
Employee Tax Expert

Stock Cost Basis

Yes - your cost basis is the stock price at the time of the gift.  You can usually find historical stock prices on the company's website.  If there were brokerage fees to you at the time of the gift, you can add them to the basis.  Brokerage fees involved in selling the stock can be subtracted from the sales price. 

 

Perhaps your stock is considered "noncovered" since it was given to you and not purchased by you.

View solution in original post

Level 1

Stock Cost Basis

@Irene2805 thank you for your reply. My subsequent research confirmed the same. Appreciate you taking the time to answer my question.

 

Regarding covered versus non, I called the new firm again to get additional information and was also advised that company gifted stock is generally considered non-covered. Thanks!

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