it is the amount that you initially invest. Plus and amount it costs you to invest it. Or the amount that you receive when someone leaves you an amount as a beneficiary.
The cost basis is the original value of an asset adjusted for stock splits, dividends or capital distributions. It is used to figure capital gain or loss for tax purposes
Cost basis is equal to cost basis of original grantor plus any gift tax paid (the same as if the beneficiary had received the stock directly as a gift)
20.5$per share
Restricted Stock Units (RSU) Sales and Tax Reporting from The Finance Buff: http://thefinancebuff.com/restricted-stock-units-rsu-sales-and.html
If the fair market value (FMV) of the stock was greater than the donor's adjusted basis at the time of the gift, your basis is the donor's adjusted basis plus any gift taxes paid at the time of the gift. http://www.irs.gov/faqs/faq-kw77.html
The cost basis for a stock gift is the original price paid for the stock by the person who gifted it.
To find the cost basis for old stock, you can calculate it by adding the original purchase price of the stock to any additional costs such as commissions or fees paid at the time of purchase. This total amount is your cost basis for the stock.
The cost basis after the spin off was 27.99. In addition, the at-cost basis was at 72.01 of previous basis.
To calculate the cost basis for inherited stock, you typically use the value of the stock on the date of the original owner's death. This is known as the stepped-up basis. You can also adjust the basis for any additional expenses or fees incurred during the inheritance process.
The cost basis is the original value of an asset adjusted for stock splits, dividends or capital distributions. It is used to figure capital gain or loss for tax purposes
Cost basis is equal to cost basis of original grantor plus any gift tax paid (the same as if the beneficiary had received the stock directly as a gift)
To determine the cost basis of old stock, you can calculate the original purchase price of the stock, including any fees or commissions paid at the time of purchase. This information can be found in your records or by contacting the brokerage firm where the stock was purchased.
The cost basis of your RSU with a value of 0 is typically the fair market value of the stock on the date it vested.
The cost basis of stock acquired by transfer on death (TOD) when it is sold is typically the fair market value of the stock on the date of the original owner's death. This is known as a "stepped-up" cost basis. This means that any potential capital gains or losses upon the sale of the stock will be calculated based on the value at the time of the original owner's death, rather than their original purchase price.
The books Stock Investing For Dummies and The Complete Idiot's Guide to Stock Investing provide basic information on stock investing in layman's terms.
You can learn the basics of stock investing on Money works4me's Stock Shastra Blog , a space where you will find interesting posts on timeless principles of stock investing which will empower you to be a sensible stock investor.
Understanding the cost basis when gifting stock is important because it determines the potential tax implications for both the giver and the recipient. It helps ensure accurate reporting of capital gains or losses when the gifted stock is eventually sold.