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Author: L0MAX Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121316  
Subject: Cost basis of stock sold Date: 2/10/2001 12:26 PM
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I'm sure this has been asked before, but I don't know the right words to ask in the search.

I have the statements in front of me that tell how many of my company stock were purchased and on what date and price (this is a company employee stock purchase plan). I sold it all last year, but don't know how to figure out the cost basis for it all.

There an easy forumlae or an online calculator?

--Lomax
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Author: jkrou Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 46124 of 121316
Subject: Re: Cost basis of stock sold Date: 2/10/2001 12:34 PM
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Lomax,
Assuming your purchases are all over one year ago, making it a long term deal, do this: add up the number of shares bought and write it down. Add up the the dollar amounts invested for a total, write it down. Now since all shares were sold, the first total you found should be the same number as the number you sold. Your basis for them is the second number you totalled.

Now, assuming you have some stock bought less than a year ago then you would do the same as above after sorting your statements into those over one year and less than one year. You will report the number of shares bought less than one year with its total cost, and those over one year on different lines. Split the selling information accordingly, finish the math and you are done.

Jenn

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Author: Crosenfield Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 46126 of 121316
Subject: Re: Cost basis of stock sold Date: 2/10/2001 12:40 PM
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The cost basis is the sum of the amounts you paid for the various lots. For each lot you multiply the price by the number of shares.
You use the calculator to add. Nothing fancier than that.
Best wishes, Chris

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Author: jumpinjupiter One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 47117 of 121316
Subject: Re: Cost basis of stock sold Date: 2/24/2001 4:51 PM
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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.

jumpinjupiter

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