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Financial Planning / Tax Strategies


Subject:  Re: Cost basis of stock sold Date:  2/24/2001  4:51 PM
Author:  jumpinjupiter Number:  47117 of 127613

I read some of the advice offered and I caution you that there may be some complexities beyond adding, maybe a litle multiplication!

If you did not keep records of your purchase price for the company stock purchase plan then you'll need to do some research. Check to see if there is a formula for the purchase price. For example you may have bought the stock at the lower of two prices at the beginning and end of some subscription period or you may have purchased the stock at some flat , say 10%, discount below fair market value. FMV itself may be defined as close or average of prior day close and purchase date close.

If you contact the company's administrator for the spp then they may have a nice tidy table of purchase dates and prices. If they don't then lobby them to provide it as you are probably not the first or the last employee to ask.

Aside from this bit of research the rest of the advice is spot on.

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