Legal Question in Tax Law in California

My elderly uncle wants to sell some of his stocks but he cannot remember when he purchased them or what the initial investments were. When he sells, what cost basis will be used for his taxes.

Thank you

Asked on 3/30/12, 8:39 pm

1 Answer from Attorneys

Neal Rimer Neal M. Rimer, Esquire

The CUSIP number should help you find out more information on the purchase date and then what price was paid. You might have to look into stock dividend information along the way from the date of purchase to the date of sale to identify if any stock dividends were paid and if they were taxable. Taxable stock dividends will add to the cost basis of the stock that is then sold.

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Answered on 4/02/12, 3:42 pm

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