Post: #1

To the United States accountants and tax heads, how does one calculate cost basis? My brokerage firm is dragging their feet this tax season due to the tax adjustments during the fiscal cliff. I may not get my 1099 until late March. I am sure I am in the same boat with a lot of investors.

I looked up the investopedia definition but it is still unclear. Please help.

Post: #2

On stocks?

All you do is take your weighted average buying price and then your exit point.

If you were in and out of securities make sure you don't mix up long-term versus short term cap gains.

Post: #3

Yes, stocks. Ok, let me be more specific: I bought three shares of stock X in February 2012. I sold those three shares in May 2012 after they increased in value. That is the extent of the activity during that year.

Post: #4

Okay so you just take the profit of the trade and that is a short term capital gain. Done deal. Also include a dividend if you received on.

Post: #5

Obviously you need to dl statements/tax slips from your broker for reconciliation/reference/recordkeeping purposes but you shouldn't be relying on or waiting on anything from your brokerage at all, especially for something like this.

Post: #6

Thanks for the replies. For further info, I'll send some PMs.