The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: COST BASIS||Date: 6/29/2006 12:17 PM|
|Author: TMFPMarti||Number: 87604 of 121061|
50 shs of stock X purchased few years ago @ $60/sh ($3,000 outlay, excluding commission to simplify scenario). No other purchases made since original purchase. Stock X has split 4 times over the years w/total now 800 shs.
No dividends/capital gains received.
(1) Assume 400 shs are sold today, price TBD. What is cost basis for the 400 shs, excluding commission to simplify scenario once again?
Now that you have the answer to your question, slap yourself 'cross the face and repeat, "I will not put off basis adjustments again" until you really mean it.
The time to ask this question was at the first split. You then note your original purchase confirmation, which is where you'll go when you ultimately sell one or all the shares, for basis.
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