Use the right cost basis to avoid overpaying taxes
Cost basis is just a fancy term given to the purchase price paid to acquire shares—and it’s used to determine the gain or loss when those shares are sold. For stock plans, your cost basis may need to be adjusted to reflect the compensation income you already reported and paid tax on. But don’t worry—Fidelity will calculate your cost basis and provide it on the tax forms you receive.
Related resources and actions
Highlights of key IRS tax changes to be aware of when preparing your tax return.
Please wait while Fidelity's Virtual Assistant loads.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
Virtual Assistant is Fidelity's automated natural language search engine to help you find information on the Fidelity.com site. As with any search engine, we ask that you not input personal or account information. Information that you input is not stored or reviewed for any purpose other than to provide search results and to help provide analytics to improve the search results. For account servicing requests, you may send our customer service team a secure, encrypted message once you have logged in to our website. Responses provided by the Virtual Assistant are to help you navigate Fidelity.com and, as with any Internet search engine, you should review the results carefully. Fidelity does not guarantee accuracy of results or suitability of information provided.
Fidelity does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact investment results. Fidelity cannot guarantee that the information herein is accurate, complete, or timely. Fidelity makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation.
The Fidelity Investments and pyramid design logo is a registered service mark of FMR LLC.
Fidelity Stock Plan Services, LLC, provides recordkeeping and/or administrative services to your company's equity compensation plan, in addition to any services provided directly to the plan by your company or its service providers.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917