How do I determine the cost basis of stock I am purchasing weekly through payroll deduct?

Question

Sold shares on two different occasions in 2006

Answer 1

You get a statement from your employer that shows the decuctions from your pay and the price paid for the shares of stock as they are purchased.

You'll also get a statement showing the shares that were sold and the amounts realized from the sale of the shares. That statement would come either from your employer or the broker or custodian that was holding the shares in your name.

Your taxable gain is the difference between the purchase price and the sale price when you sell the shares. You have to identify the specific shares that were sold in order to properly calculate the gain. If the shares were held in street name, your broker or employer can tell you which shares were sold, though they should have asked you which shares you were selling. If you had physical posession of the shares, the actual shares you sold are the ones you are concerned with.

Answer 2

You should get an account statement which should tell you how many shares you have acquired and how much you have contributed in all. Just take the amount contributed divide by the number of shares and this becomes your average cost basis per share. Other than that, you'll probably have to contact the financial institution. You may trying going online and see if you can find information on specific purchases, but the average cost method described above is the simplest and probably the best use of your time.