Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: bliles One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123477  
Subject: Re: Stock split Date: 1/20/1999 11:40 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
MoneyMe queried:

l) Just want to be sure I understand this right. I can add the commission charges to my base when I
figure out the captial gains?

Correct. The commission on the purchase of the stock is added to the purchase price of the stock. The commission on the sale of the stock is subtracted from the gross receipts of the sale. The net purchase price is then subtracted from the net receipts to calculate the capital gain.

2) My original purchase date is the date I use even if I have recieved more stocks due to a split?


3) The capital gains tax last year for stocks held over 18 months was 20%? Please correct me if
I'm wrong. And for this year they are just at whatever tax rate your income is based on? Doesn't
matter if these are short or long term holds for this year?

Not quite. As of 1/1/98, the 20% (or less) tax rate applied to stocks held over a year. That can be stated as a year and a day. The 18 month holding period applied to some stock sales in 1997. The capital gains that are taxed at your marginal tax rate are the short term gains regardless of the year of sale.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next


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.
Foolanthropy 2015!
Fistula Foundation: A World of Good!
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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.