dudearino wrote:

- quote -

By "she", if you mean your wife, no; if your mother in law,
yes.

- quote -

Last question first; no.

Cost is original cost plus reinvested dividends. So you
have a bit of detective work to do. At least you have
original cost (twice the receipt you have). Now to
reconstruct dividends from 81 to 84, then from there on it's
all downhill.

Cheer$,
Harlan Lunsford, EA n LA

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This is a multiple part question.

1) My wife has stock that was bought in her and her
mother's name in 1981. In 2001 the stock was transfered
into only my wife's name. It was approximately $35000.
First question is this, should she have paid gift taxes when
the stock was transfered to only her name?

2) We sold approximately $17,000 worth of the stock in
2003, what is the cost basis. I think it is what it was
bought for, but here's the thing, We have complete records
from 1984 to present but there is missing records from 1981
to 1984, we have a receipt for half the initial purchase in
1981 but that is it. Also, this stock was a high dividend
stock so over 20 years the dividends were reinvested, do I
have to calculate the cost basis for every share like first
in first out. Am I better off paying taxes on the full
$17000.

Thanks

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