![]() The broker is required to provide you basis information on the Form 1099-B, Proceeds From Broker and Barter Exchange Transactions. Except for certain mutual fund shares and certain dividend reinvestment plans, you can't use the average basis per share to figure gain or loss on the sale of stock.Įach security you buy is considered a covered security. The basis of the shares you acquired first, then the basis of the stock later acquired, and so forth (first-in first-out).If you can't adequately identify the shares you sold and you bought the shares at various times for different prices, the basis of the stock sold is: What you paid for the shares sold plus any costs of purchase.If you can identify which shares of stock you sold, your basis generally is: When selling securities, you should be able to identify the specific shares you are selling. The basis of stocks or bonds you own generally is the purchase price plus the costs of purchase, such as commissions and recording or transfer fees. Your total basis in these 200 new shares is $1,200, the same as your basis in the 100 shares before the split. Similarly, your second lot of 100 shares is now 200 shares. Your total basis in the 200 new shares is the same $1,000 basis you had in the 100 shares before the split. The first lot of 100 shares is now 200 shares. announces a two for one stock split and issues you 200 additional shares. You later bought another 100 shares at $12 per share. You initially bought 100 shares at $10 per share. Example: Suppose you have 200 shares of XYZ Inc. Allocate the adjusted basis of the old stock between the old and new stock on a lot by lot basis.If you purchased the old shares in separate lots for differing amounts of money (a different basis per share in different lots): Determine the per share basis by dividing the adjusted basis of the old stock by the number of shares of old and new stock.Allocate the basis of the old shares to the old and new shares.If the old shares of stock and the new shares are uniform and identical: If you own stock that has split and now own additional shares, you must adjust your basis per share or per the lots of the stock you own. A stock split occurs when a company creates additional shares, thus reducing the price per share.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |