1.

Definition of COST
a. Purchase – acquisition cost
b. Inheritance - fair market price or value as of the date of acquisition
c. Gift/Donation - show me the same as if it would be in the hands of the donor OR the last
preceding owner by whom it was not acquired by gift, except that if such basis is greater
than the fair market value of the property at the time of the gift then, for purposes of
determining loss, the basis shall be such fair market value.
d. Acquired for less than an adequate consideration in money or money's worth - amount
paid by the transferee for the property.

2. Definition of “fair market value” of the Shares of Stock - for purposes of this Section, “fair
market value” of the share of stocks sold shall be:
a. In the case of listed shares which were sold, transferred, or exchanged outside of the trading
system and/or facilities of the Local Stock Exchange, the closing price on the day when the
shares are sold, transferred, or exchanged. When no sale is made in the Local Stock
Exchange on the day when the listed shares are sold, transferred, or exchanged, the closing
price on the day nearest to the date of sale, transfer or exchange of the share shall be the
fair market value.
b. In the case of shares of stock not listed and traded in the Local Stock Exchanges, the value of
the shares of stock at the time of sale shall be the fair market value.

NOTE: Adjusted Net Asset Method no longer applies under Revenue Regulations No. 20-2020