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Author: brigidfreeman Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121592  
Subject: Cost Basis for Stocks Date: 2/16/2000 10:09 AM
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I've sold several stocks this year. I'm trying to figure out my cost basis. These stocks were held in a dividend reinvestment account. What's the formula?
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Author: RooCat Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 28830 of 121592
Subject: Re: Cost Basis for Stocks Date: 2/16/2000 11:33 AM
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The basis is your original investment of $y for z shares plus the total number of shares purchased by the dividends. Assuming you have had these DRIP accounts for some time, the dividends reinvested would be divided into 2 groups - short term and long term.

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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 28838 of 121592
Subject: Re: Cost Basis for Stocks Date: 2/16/2000 11:58 AM
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<< I've sold several stocks this year. I'm trying to figure out my cost basis. These stocks were held in a dividend reinvestment account. What's the formula? >>

If you sold all your shares of a company, simply add up everything you invested, including the reinvested dividends, and separate into short- and long-term.

If you sold only a part of your holding, you sold the oldest shares first. Start with your initial investment, adding purchases (including reinvested dividends) until you get to the number sold, separate into short-and long-term if necessary, and there's your basis.

Phil Marti
Tax Preparer

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