Capital Gains Calculation
In order to calculate your capital gains, you will need certain information:
• The number of shares sold
• Selling price per share
• Cost basis per share
Calculating the cost basis will be your most difficult task. The official word from the tax code about how to determine cost basis states: “If you buy and sell securities at different times in varying quantities and you cannot definitely identify the securities you sell, then figure the basis of those shares under the first-in-first-out (FIFO) method—that is, the first securities you acquired are the first sold.”
The cost basis is the dollar amount you paid for the stock. It will include the price of the stock plus any costs incurred, such as commissions, ...