The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Stock cost basis for ESOP & DRIP||Date: 10/26/2012 5:25 PM|
|Author: Bob78164||Number: 116845 of 121218|
TMFPMarti writes (in part):
This is actually a lot easier than it appears on the surface since you're going to sell all your shares. You can show your date acquired as "various." Your basis is the total of:
1. Any amount relating to the purchases reported as wages on your W-2's; plus
2. Your reinvested dividends.
One tweak may be necessary here. If you are still purchasing shares through a DRIP, then the purchases within one year of your sale are short-term shares which must be accounted for separately from the remaining long-term shares.
If you end up deciding to sell only a portion of your holdings, be sure you understand the rules pertaining to specific identification, because those rules, properly applied, can save you money. --Bob
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