<prompt> Human: Several years ago, I inherited 200 shares of stock in the Dow Chemical company from a relative who purchased it several decades ago, probably so long ago that theres no record of the purchase price. The stock is historically quite high right now, so Im considering selling it with the intention of reinvesting ifwhen it dips back down again or in another stock entirely. My question is mainly about taxes. Am I taxed on the gains based on its value when it was given to me or when it was purchased? And what if they cant tell its original purchase value? Or, since Im planning to reinvest in stocks later, is there a way to hold those funds and avoid paying taxes on it? Or is there another option that Im missing?  <response>: Usually if stock is inherited the cost basis is reset to the time it was inherited and you dont owe any capital gains taxes on increases in value when the original holder was alive likewise you cant claim a capital loss. Realizing gain since the time you inherited the stockthe cost basis was reset would be a taxable event. 