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I purchased 300 shares of Alcoa, it has split twice giving me 1200 shares. All shares are long term capital gains. I sold 600 shares for $24000.. My original cost for the 300 shares was $20000. Can I for tax reporting apply the entire $20000. cost, taking a $4000. long term capital gain and retain the balance of 600 shares at a zero cost?

No, definitely not if it was a series of two, 2:1 stock splits as you describe it. The cost basis for your 1200 shares was $20,000. If you sold 600 shares, the cost basis for those 600 shares would be $10,000. (Assume we're using "round numbers" here. Your original cost basis should have included whatever commissions and fees were involved in your acquiring the shares, your sales proceeds should be net of commissions and fees as well.) Sounds like you have a long-term capital gain of $14,000. The 600 shares you still hold have a cost basis of $10,000.

If this isn't clear, you need to do some homework. Post back if you have questions.

Hope this helps,
Phooley in Phoenix
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