I'm hoping some accounting-minded or otherwise tax-savvy CFs out there can help me out here. Years ago, I was gifted stock by grandfather. In 2015, I sold that stock at a profit over what my grandfather initially paid per share. Now that it's tax time, I need to figure out my cost basis. These were non-covered shares, and as such, cost basis was not listed on my 1099-B. The issue is that I'm not sure of the whereabouts of any documentation showing the price of the shares when he purchased them. With that in mind, what are my potential options for finding/figuring cost basis? Thanks in advance for the help!
EDIT: Real answer If you received the gift as an inheritance you get "step up" basis. You pay the tax on the capital gains on the basis of the value on the day you inherited the shares to the day you sold them. If they were a true gift, you do not get step up basis, you take the basis he had when he purchased them. You'll be forced to try to research on the prices he paid, or at least the average. If those records are completely unavailable you are kind of stuck paying total tax: http://finance.zacks.com/unknown-cost-basis-bonds-stocks-11099.html
That number would be much easier to figure, as I have the date on which the shares were gifted to me. But based on what I've read, the cost basis figure on shares that were gifted and then sold is the cost to the original buyer at the time they were purchased. Certainly, I'd love to be corrected if I'm wrong on that.
Google is your friend: http://www.schwab.com/public/schwab...s-on-Whether-You-re-the-Giver-or-the-Receiver
I've had some issues like this in the past where the actual cost basis couldn't be identified exactly. The real truth is, relax, the IRS doesn't really care. You put down a reasonable number and they almost never question it, they can't verify anything more than you can and they don't care to spend time on anything that costs them more than they collect. Put in a little effort, make you your best estimate, pay what you think you owe and you're fine. They are so underfunded, undermanned and overworked with real big money issues and fraud they won't even notice.
Bump.... I mailed my taxes in around the 1st week of April and according to that "where's my refund" IRS website, they are unable to provide any information about my return. Should I be concerned that my taxes were lost in the mail? Or keep waiting? How accurate is that website? Have they really not received my return or is the website just not updated?
Why didn't you e-file? Where's my refund is an up to date website. I'd call the IRS if you want confirmation of it being received.
I don't know the specifics, but if it is actually a gift (not inheritance)... it is not taxable up to $100,000.
I mailed my grandmas taxes in because she was deceased. It took 3 weeks for an update on the "Wheres My Refund" site. Then, the status bars disappeared after a week. Turns out, the IRS needed more information, which we provided after they mailed information to us. Then the status bars reappeared and my grandmas refund was deposited for my mom.
