It's the foundation upon which your capital gains or losses are determined, impacting your tax liabilities.
However, what happens when you find yourself facing the challenge of missing cost basis information?
Whether due to incomplete records, inherited assets, or forgotten details, calculating missing cost basis can be a daunting task.
But fear not, as there are methods and resources available to help navigate this issue.
Before delving into calculating missing cost basis, let's recap what cost basis represents.
In simple terms, the cost basis of an investment is the original value of an asset for tax purposes.
It includes the purchase price plus any additional costs such as commissions, fees, and adjustments like dividends or stock splits.