How do I find a stock's cost basis? (2024)

FAQs

How do I figure out the cost basis of stock? ›

For stocks and bonds, the cost basis is generally your purchase price for the securities, including reinvested dividends or reinvested capital gains distributions, plus additional costs such as the commission or other fees you paid to complete the transaction.

To calculate the equity cost basis for a non-dividend-paying stock, you add the purchase price per share plus fees per share. Reinvesting dividends increases the cost basis of the holding because dividends are used to buy more shares.

The IRS expects taxpayers to keep the original documentation for capital assets, such as real estate and investments. It uses these documents, along with third-party records, bank statements and published market data, to verify the cost basis of assets.

Cost basis represents the initial value of a security or mutual fund that an investor owns. The average cost is calculated by dividing the total amount in dollars invested in a mutual fund position by the number of shares owned.

How can we help? The Form 1099-B that you receive might only report the sale date and sales proceeds. If it does not report the date acquired or cost basis, you still need to enter that information when you report your Form 1099-B in the TaxAct program so that it will transfer to Schedule D and/or Form 8949.

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 than the original cost basis, use the original cost basis when you sell.

Sometimes, unknown cost basis is simply the result of an account pre-dating cost basis records. Other times, unknown cost basis results from a transfer of shares from one account or account type to another.

Cost basis is the price paid to acquire shares plus commissions and any fees. Stock plans enable employers to issue company stock for services rendered. Employers issue company stock as part of compensation to their employees.

Can I use an average cost basis for stocks? ›

You can only use the average cost method for mutual funds and most ETFs (exchange-traded funds), and for stocks acquired as part of a dividend reinvestment plan on or after January 1, 2011. Are you investing in something other than mutual funds?

Average Cost per share = Total purchases ($2,750) ÷ total number of shares owned (56.61) = $48.58. To calculate the average cost, divide the total purchase amount ($2,750) by the number of shares purchased (56.61) to figure the average cost per share = $48.58.

The simplest way to keep track of your cost basis is to note the amount of dividends on which you're taxed from year to year. By adding those amounts to what you originally paid for shares, you'll accurately reflect your total cost basis for the position.

At a very basic level, the cost basis is the cost of your small business. The basis calculation consists of your financial contributions to the company plus ordinary income and losses minus distributions (like dividends and other payouts).