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No. of Recommendations: 1
irasmilo writes (in part):

As always, it depends. <g> In general, your cost basis will be the same as your parents' cost when they purchased the stock. However, if the stock was worth less on the day they transfered it to you than their cost, you need to keep track of both amounts.

I reply:

Based on the facts posted by zipper103, it seems to me that the stock belonged to him or her all along, and the parents were merely nominees. What's crucial to me is that zipper's funds were used to make the purchases. If that's correct, his or her basis is simply the cost basis, and there are no gift tax issues. If we're lucky, any dividends were correctly reported. --Bob
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