find unknown cost basis of old stock?

[masraum]

If you don't have records, how do you get the stock basis of old (10 yr) stocks?

If you know approximately when stocks were purchased, but not exactly?

Then there's the issue of dividend reinvested shares.

It almost seems like an estimation (based on approx time of purchase and cost over that time range) that favored the IRS would be better than just going with $0.

Hypothetically, if you knew you purchased some stock during a period after a company's stock had plummeted due to an event, and you reinvested the dividends, and you sold the whole lot after 10 years and the whole amount was only about $3k, would you estimate the cost basis or just go with 0?

[KFC911]

I've always kept stocks in tax deferred accts....homey don't play dat schit .

I'd guestimate the cost basis...but that's a piddly amount either way. I don't think the IRS gives a crap about us little people....and if they do squawk....no biggie .

I've never been audited.....

signed by

A peon

[legion]

I had this same problem about 10 years ago.

My great grandmother died in 1987. She owned a large part in a small, local bank. My father died in 2006, and my sister and I inherited his share of his grandmother's estate. Executor duties passed from my father to my aunt. The decision was made to sell my grandmother's share of the bank in 2010. Funny thing, it wasn't a publicly traded stock and shares last changed hands in 1973.

I basically took the share price in 1973 and drew a straight line to 2010 (as they were the only two share prices available), then I figured out what the price would have been in 2006, and used that as my cost basis.

It was the best I could come up with.

[stevej37]

Estimate the purchase price as close to the current price as you dare...if there are no records.

[flatbutt]

Originally Posted by masraum

If you don't have records, how do you get the stock basis of old (10 yr) stocks?

If you know approximately when stocks were purchased, but not exactly?

Then there's the issue of dividend reinvested shares.

It almost seems like an estimation (based on approx time of purchase and cost over that time range) that favored the IRS would be better than just going with $0.

Hypothetically, if you knew you purchased some stock during a period after a company's stock had plummeted due to an event, and you reinvested the dividends, and you sold the whole lot after 10 years and the whole amount was only about $3k, would you estimate the cost basis or just go with 0?

Did you get the stock through a broker? They should have the record. If the 3K still represents a loss it's worth the write-off.

[masraum]

Originally Posted by flatbutt

Did you get the stock through a broker? They should have the record. If the 3K still represents a loss it's worth the write-off.

Not a loss. Hypothetically, no longer with the broker for the past 8-9 years, and the broker doesn't have a record of an account since they've been acquired by by another broker. I think it's possible that there could be printed records at work, but I'm not going into the office to check.

[MRM]

We have some stock that we purchased before companies and brokerages had to keep track of the basis for you. We know what year and quarter it was purchased, just not the exact date or basis. Our broker suggested we use it to make our charitable contributions rather than go through the hassle of calculating the basis. I wasn't feeling that generous so I asked him what we would do if we did want to sell it. He said you do the common sense thing and do your best to estimate the dates of purchase and average the prices to get as close as you can. You need to keep your calculations in case the IRS challenges you and he did say you want to be conservative.

If it's not a big amount and you were going to make a charitable contribution anyway, you might want to use this stock to do it rather than give cash to your organization. If you don't feel like giving it away, do what you had already figured out and be prepared to show your work in case someone questions your calculations.

[93nav]

I own two stocks that have been DRIPS for a long time. I requested info from one of them on my purchases. They were only able to provide about 10 years worth. When I sell, I assume they will be required to report something to the IRS. Do they need to provide the cost basis to them, or only the cost basis after a certain date?

[masraum]

Originally Posted by 93nav

I own two stocks that have been DRIPS for a long time. I requested info from one of them on my purchases. They were only able to provide about 10 years worth. When I sell, I assume they will be required to report something to the IRS. Do they need to provide the cost basis to them, or only the cost basis after a certain date?

A law was passed in 2008 that gave them 3 years to be in a position to provide a cost basis. So, they are only required to keep and provide a basis for purchases after 2011.

[greglepore]

If they are publicly traded there are web tools that have historic prices-I've used that to estimate.

[monoflo]

I believe that the basis point of the stock is its value at the point/date of the persons death.

Flo