Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I bought shares of a company several times. During this period the stock split a few times as well. I
sold some of the stock yesterday and now I don't know how to calculate the cost basis anymore. Please can anyone explain the method to do this?

This has been explained in the FAQ as well as in several previous posts which you could have searched for. You have to keep track of each purchase separately. You should know or be able to look up the splits either elsewhere in the Fool or at the company's investor relations web site. Multiply each purchase times the splits relative to that stock. The total number of shares in the first group of stocks you bought after calculating the splits is divided into the original purchase price to give you the per share price. You do this for each group so you won't have to do it later and your records are up to date. Multiply that times the number of shares you sold to get your cost basis on the stock you sold. The initially purchased group of stocks is the one you sold since you must use FIFO unless you used specific identification prior to selling the stock.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.