Free stocks

Pymalovefarm
Pymalovefarm Member ✭
edited March 2022 in Investing (Windows)
I get a couple free stocks from Stash each month. Like $.20 worth at a time. Do I just record these as stock purchases with the price paid as $0? Or is there a different way that I should be entering these transactions?

Comments

  • Jim_Harman
    Jim_Harman SuperUser ✭✭✭✭✭
    edited February 2022
    If when you sell them you will have a capital gain of the full value of the stocks, then yes you would record that as a Buy with a price of $0.00.

    If there was cash in your account that they used to buy the stocks, then it would be a Buy for the amount of the cash.

    Study your statement carefully or contact Stash to see how the cost basis of the "free" stocks is treated.
    QWin Premier subscription
  • bmciance
    bmciance SuperUser ✭✭✭✭✭
    Really the key is whether Stash will include the value if the "free" stock in a 1099 sowing as income to you. If so, then you would use that as your cost basis. If not then your cost is 0 and you would have a full gain when you sell it. 
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