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Enter a basis equal to the proceeds if Pub 551 doesn't tell you to do something else.

Thanks for your response. However, I am not sure I understand what you mean. Pub 551 (obviously) does not tell me anything about Turbo Tax. As I understand it, it does tell me that my cost basis is the FMV on the day I received the stock. As I explained in the previous post, I sold between my cost basis and the donor's cost basis (former less than latter). As such, I should have no gain or loss, but was unable to figure out how to make Turbo Tax handle this (short of just entering the basis to be the same as the net proceeds, as you suggested). There is the concept of adjusted basis, but the various descriptions of situations where the basis can be increased didn't seem to apply to stock (all appeared to be related to property such as real estate, etc.). It is possible that I am interpreting Pub 551 incorrectly...

I will have to check if Turbo Tax allows me to override the return to attach a statement (similar to my original post), so that I can explain how I arrived at the end result of no gain or loss, and hope that would sufficient for the IRS.

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