Ten years ago, I received stock from my employer as a bonus. I paid tax on the value of the stock at that time. I sold the shares in 2008. What is my basis for purposes of determining gain or loss on the sale?

Ten years ago, I received stock from my employer as a bonus. I paid tax on the value of the stock at that time. I sold the shares in 2008. What is my basis for purposes of determining gain or loss on the sale?

The basis of the stock is your cost basis, which is the value of the stock that was included in your income when you received it (and the amount you paid taxes on)[Au: pls check wording]. If, over the years, you received dividends that you reinvested in additional stock and the additional stock was also sold, be sure to include the reinvested dividends as part of your basis.