18 Mar I sold stocks but I don’t know the cost basis. What can I do?

Q. I sold stocks worth $29,000 in 2023. I don’t have the cost basis. What do I need to pay the IRS?
— Investor

A. You have some options.

Starting in 2011, the cost basis rules changed for brokers. Starting that year, brokers must report the adjusted basis and whether any gain or loss on a sale is classified as short-term or long-term from the sale of “covered securities” on Form 1099-B.

Generally, you should be able to get cost basis data from sites like Yahoo! Finance if you know when the stock was purchased and there was no dividend reinvesting involved.

If there were dividends that were reinvested, you can call the investor relations department of the company, which should be able to help track down the stock’s history. The company’s website may also have the information you need.

Stock splits, corporate reorganizations or mergers can cause similar challenging in tracking down your cost basis, so again, try that investor relations department.

But for that to work, you will need to know the purchase date.

If you can’t find the cost basis, you could be in trouble because tax law states that without documentation, the cost basis is zero.

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This story was originally published in March 2024.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.