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Financial Planning / Tax Strategies


Subject:  Re: Stock split Date:  1/18/1999  10:40 PM
Author:  gapfan Number:  8559 of 123001

<<<<I've held some stocks for awhile and they have split. I am thinking of selling half of them, but not sure how to figure what capital gains base price I would use. I had 100 and now have 200. Lets just say I paid 25 a share. Would I use half of this amout or take all the original price off the first 100 sold, making the 100 left, 100% capital gains at their time of sale at a later date? And after doing this what would I do if these should split again after doing this??>>>>

You will get an official answer later but I offer that answer and a suggestion which was very profitable for me. First the cost basis: Original cost divided by the shares at the time = cost per share. In your example, you started at $25/share. A split gave 2 shares for 1, thus $25/2shares = $12.50/split share. Repeat the process as necessary. When you sell you figure the cost basis of the spe