## How is the cost basis of a stock calculated

19 Feb 2013 a stock's cost basis is more tedious than tough. When you make money on your investments%2C Uncle Sam wants his cut; Calculating your  If you invest without a stock broker, you will need to calculate the cost basis of your assets yourself in order to do your taxes. [2] X Research source. For stocks

## Last year, you sold all your stock for \$1,500. Here’s where your reinvested dividends can help reduce your taxable gains. Take your \$1,000 original purchase price and add the \$300 that you reinvested — and already paid tax on — when you filed your 2008 and 2009 returns. This gives you an adjusted cost basis of \$1,300.

### 24 May 2019 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 basic cost basis of stock shares is the purchase price per share plus the per share amount of any commission paid to buy the share. For example, if you bought 100 shares at \$20 per share and paid a \$10 commission, your cost basis would be \$20 plus 10 cents per share for the commission for a total of \$20.10 per share. Couples filing joint returns with taxable income below \$68,000 get a 0% rate on long-term gains. Kids can have up to \$1,900 of investment income before that income gets taxed at parental rates. If you have a \$1,500 stock position of unknown cost that you want to get rid of, Your basis in the stock depends on the type of plan that granted your stock option. Regarding how to how to calculate cost basis for stock sale, you calculate cost basis using the price you paid to exercise the option if both of these are true: The plan was an incentive stock option or statutory stock option. Cost basis is a measure of the amount of the original investment in a stock or other asset. It is often used to calculate capital gain or loss, especially for tax purposes. The gain or loss is the price which the asset was sold at minus the cost basis.