Re: Capital Gain

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Posted by Mark on July 17, 2006 at 10:29:53:

In Reply to: Re: Capital Gain posted by Gary Trimmier on July 17, 2006 at 09:22:39:

: Mark,
: Thanks. I did record the stock with a purchase price of $0. However when a run any of the capital gain reports after I sell the stock it shows a 100% gain. Now that is true for the value, however it is not true for tax reporting. The capital gain/loss should be the difference of the value when I or giver received the stock and when it was sold.
: Thanks again,
: Gary T.

Hi Gary,

The gain shown on the capital gains reports will be the value you sold it at minus your cost basis. If you bought it at a price of $0 then the gain will be 100% of the sell value. If there is another cost basis you'd like to use (because it transferred from the person who gave you the stock) then you should record your purchase at that price, instead of $0.

Thanks,
Mark
--
Fund Manager - Portfolio Management Software

Replies:

• Re: Capital Gain Gary Trimmier 13:23:13 07/17/06 (1)
  • Re: Capital Gain Mark 13:52:01 07/17/06 (0)