Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-18-2015, 12:38 AM
Junior Member
 
Join Date: Feb 2015
Posts: 2
Question Is there a Cost Basis for Add Shares and Remove Shares.

Hello!

Here's what I am working with so far:

Cost Basis for add-type transaction (Buy, Reinvest Dividends, Capital Gains, etc.) = (# of shares) x (price per share) + (Commission)

Cost Basis for subtract-type transaction (Sell, etc.) = (# of shares) x (price per share) - (Commission)

But what do you do when the company adds shares on you? Do you put the price per share to 1 or 0?

I appreciate your help!


Regards, Leaning



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-18-2015, 05:40 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
in general, The cost basis of any investment is the original value of an asset adjusted for stock splits, dividends and capital distributions. It is used to calculate the capital gain or loss on an investment for tax purposes. With respect to stock, basis may be difficult to calculate since shareholders may hold stock over a period of many years; or participate in a dividend reinvestment plan . Additionally, companies may split, merge or spin off their shares. several types of events require you to adjust the cost basis of shares you own. For example , a stock split changes the basis inverse to the split ratio. So a 2-for-1 split cuts the cost basis per share in half. A merger or spin-off of a company in which you own shares changes the basis depending on how the terms of the deal affect the per share price of the stock for that company. Since 2011, Brokers are now required to file an informational return with the IRS each year which reports gross proceeds from the sale of stock together with the taxpayer’s adjusted basis. Brokers must not only report basis as the amount of cash paid or credited for the purchase of stock but must also reflect adjustments for commissions and fees as well as other events that affect basis, such as a stock split. I guess you need to contact stock broker for professional help



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 02-18-2015, 07:14 PM
Junior Member
 
Join Date: Feb 2015
Posts: 2
Wnhough,

Thanks for your reply. That's the kind of stuff I am finding, but doesn't really help with the Add Shares transaction.

I'd attach a picture to help but when I get the jpg filesize down to your max of 19.5, it's unreadable.

That's OK. I appreciate your info.

Regards,

Leaning



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
trading shares between multiple s corps garfieldave S-Corporation 1 01-24-2015 07:36 PM
Allocating S Corp shares to a new member Rsiv S-Corporation 1 11-27-2013 11:06 PM
I hold shares of the same mutual fund at two separate brokerage houses. When I sell a fund from one brokerage, can i use their cost basis? tgenoyer Capital Gains 1 11-15-2013 02:05 PM
tax on foreign listed shares muchha Capital Gains 1 07-13-2008 11:55 AM
IRA owned shares of corporation BillsFan03 IRA/Sep 1 06-27-2008 04:14 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.