Need to determine the cost basis for tax purposes in the event I sell. Don't have records of splits, mergers and acquisitions that yielded a gain of over 455 shares and over $10K over the original cost.
2006-06-20 12:55:17 · 4 answers · asked by Jerry D 1 in Business & Finance ➔ Investing
cost basis for all 468 shares is $570. However, that assumes there has been no reinvestment of dividends.
Do you know if this stock has ever paid any dividends? If it did you should have paid tax on the dividends, and need to adjust the cost basis to add in the amounts used to purchse additional shares.
If for some reason you don't know the amounts, you can always ignore that when you sell and just assume the cost basis is $570 - you'll end up paying more tax than necessary, but should not get in trouble with the IRS.
Discalimers: The above is my opinion. I am not authorised or licensed to give any investment, tax or legal advice.
2006-06-20 19:24:33 · answer #1 · answered by akg 3 · 0⤊ 0⤋
The cost basis is whatever the value of the original 15 shares was on the date of acquisition. With the numbers you gave, that's still $570.00 for the entire block.
The per-share change in value due to splits, exchanges, etc. isn't a factor. But if you want to know that, just divide the number of shares (468) by the original total cost (570) to get a per-share cost of 0.821.
You'll only need to worry about that if you dispose of part of the shares. If there are any more splits or exchanges before you sell, you'll need to re-calculate the per-share cost if you sell less than the entire block.
The company's Investor Relations department can provide detailed information for you to reconstruct the splits and exchanges if you wish.
2006-06-20 13:03:10 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
cost basis per share is $570 / 468. Take that and multiply by the number of shares you sell.
2006-06-20 16:22:51 · answer #3 · answered by Anonymous · 0⤊ 0⤋
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2016-10-31 05:15:22 · answer #4 · answered by Anonymous · 0⤊ 0⤋