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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: cost basis for stocks that have split Date: 2/14/2014 12:59 PM
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RICHARD1076: "Talk about Buy and Hold... this year, for the first time ever, I had to sell some shares from my brokerage account. Now it's tax time. Figuring the APPL cost/profit was straightforward because I had only bought once and there were no splits, but the SBUX, not so much.

I sold 150 shares of SBUX in July.

I had purchased shares on two separate occasions:
20 @ 50.25 on 12/12/98, and 5 @ 58.1099 on 4/24/12.

Also the stock has split 3 times since '98 (2:1 each time), (and pays dividends although I don't think that matters in this calculation, does it?)."


Your stock split question was answered but not your questions regarding dividends - if you took the dividends as cash, it was income in the year your received it, and it does not affect the split calculation.

If you were having dividends automatically invested, then you own more shares than those your purcahsed directly in your statement about two separate occasions.

Givsn lack of specificity at time of sale, and application of FIFO, it would still not affect the current calcuation, but it might the next time you sell more than 10 shares (barring any further splits).

Regards, JAFO
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