Q: Is there any way I can argue the cost basis of shares of stock I sold ?
Etrade used the cost basis of xyz stock I bought at $76 even though I held the stock and subsequently added to my shares buying blocks of the xyz shares at much higher prices.
A:
If the cost basis of your shares has been reported inaccurately, there are steps you can take to argue and adjust this. The cost basis of a stock is crucial for calculating capital gains or losses for tax purposes, and it should accurately reflect the purchase price of your shares, including any additional purchases at different prices.
First, you should gather all relevant documentation of your stock transactions. This includes purchase confirmations for each block of shares bought at different prices. With this documentation, you can present a clear and detailed record of your actual cost basis to E*TRADE or any brokerage firm, demonstrating the varying purchase prices of your shares.
Next, contact your brokerage firm's customer service or support team to discuss the discrepancy. Provide them with your documentation and explain the situation. Brokerages usually have procedures for correcting cost basis information. If the initial cost basis was indeed reported incorrectly, they should be able to update it to reflect the accurate cost basis, considering the additional shares purchased at higher prices. If necessary, they can also guide you on how to adjust this information in your tax reporting.
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