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If you have many years of reinvested dividends on a stock sale can they be averaged together, added to initial purchase or must they all be individually itimized with each date on capital gain form.

Neither. There is no averaging for stock basis; each share has its own basis. There is an average cost basis method available for mutual funds, but it sounds like you're talking about stocks.

It also sounds like you're approaching this backwards. Each sale requires a separate entry on Schedule D. If one sale involved shares purchased at different times, you use "various" as the date acquired and the total basis for all the shares involved in that sale. This is covered in the Schedule D instructions.

Phil Marti
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