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Subject:  Re: Stock cost basis for ESOP & DRIP Date:  10/26/2012  1:26 PM
Author:  irasmilo Number:  116844 of 124777

Reinvested dividends increase your cost basis. Including them has the potential to reduce your taxes. If the gross sale is within the 0% bracket for capital gains, there isn't going to be any actual tax savings.

With 3000+ shares at a current price of >$50, the sale proceeds will exceed $150K. That's outside of the 25% tax bracket if you take the easy way out and assume $0 cost basis (ignoring other income and deductions/exemptions).

It will definitely be worth your while to determine the correct cost basis for your shares.

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