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Old 03-28-2011, 03:09 PM
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capital gains when sold company

I had an internet company (company A) and sold it to a corporation (company B). In exchange they gave me restricted shares. And the amount of shares they gave me was based on the stock price of the company. So if I sold the company for $50,000, and the stock price of the company at the date of sale was $1.5. They gave me $50,000/1.5 = 33,333 shares. Just an example. That was back in 2008. I sold the stock last year (in 2010) at a $0.3 even though when I acquired the shares, the price of the stock was $1.5. How do I calculate cost basis? How do I calculate my capital gains? Is my cost basis $0? Note that I sold the shares at a price less than the price of company B's stock at the date that my company (company A) was purchased.

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