Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Yes. Your cost basis (ignoring commissions) is now $5/share. Not to worry! Your money can't evaporate into thin air!"

What happens if my tax accountant didn't split the price in half when he did my taxes? he said something about selling off the first 100
shares at the original price...or something like that.

Sadly, it means your tax accountant made a mistake. A stock split requires that the cost basis be allocated equally among both the previously held shares and the new shares. You can't simply sell off the original half of the shares and allocate all of the cost basis to that lot.

Print the post  


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.
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.