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Posted by gmgenova on February 10, 2007, 6:05 am
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I bought some shares of a stock through Sharebuilder back in
2002. At the initial purchase, I bought $6.00 worth of
shares. Over the years, I have bought more shares of this
stock. Also over the years, my dividends have been
re-invested back into the stock. I sold all shares of this
stock in 2006.
My question is what would my cost basis be? I know the $6.00
is part of it. Do I also include the additional money I used
to buy more shares over the years? Do I do anything with the
dividends that were re-invested over the years?
Thanks
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Posted by Rich Carreiro on February 12, 2007, 12:04 am
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> My question is what would my cost basis be? I know the $6.00
> is part of it. Do I also include the additional money I used
> to buy more shares over the years?
Yes.
> Do I do anything with the
> dividends that were re-invested over the years?
They're part of basis too.
--
Rich Carreiro rlcarr@animato.arlington.ma.us
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Barry Margolin on February 12, 2007, 12:04 am
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> I bought some shares of a stock through Sharebuilder back in
> 2002. At the initial purchase, I bought $6.00 worth of
> shares. Over the years, I have bought more shares of this
> stock. Also over the years, my dividends have been
> re-invested back into the stock. I sold all shares of this
> stock in 2006.
>
> My question is what would my cost basis be? I know the $6.00
> is part of it. Do I also include the additional money I used
> to buy more shares over the years?
Yes.
> Do I do anything with the
> dividends that were re-invested over the years?
You add them to the cost basis.
--
Barry Margolin, barmar@alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Phil Marti on February 12, 2007, 12:04 am
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> I bought some shares of a stock through Sharebuilder back in
> 2002. At the initial purchase, I bought $6.00 worth of
> shares. Over the years, I have bought more shares of this
> stock. Also over the years, my dividends have been
> re-invested back into the stock. I sold all shares of this
> stock in 2006.
>
> My question is what would my cost basis be?
The total of everything invested, including cash and
reinvested dividends, plus purchase commissions.
If you acquired any of the shares within a year before the
sale, you have to separate those as short-term.
--
Phil Marti
Clarksburg, MD
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Han on February 13, 2007, 1:30 am
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>> I bought some shares of a stock through Sharebuilder back in
>> 2002. At the initial purchase, I bought $6.00 worth of
>> shares. Over the years, I have bought more shares of this
>> stock. Also over the years, my dividends have been
>> re-invested back into the stock. I sold all shares of this
>> stock in 2006.
>>
>> My question is what would my cost basis be?
> The total of everything invested, including cash and
> reinvested dividends, plus purchase commissions.
>
> If you acquired any of the shares within a year before the
> sale, you have to separate those as short-term.
I'm still confused.
I bought 250 shares of Exxon in Oct 2001. Reinvested all
dividends and paid tax on them. I just sold the original
250 shares earlier this year (2007), and realize I have to
pay tax on the cap gain. I have always thought that the cap
gain is based on the basis (original purchase cost,
including commission) and the selling price (net, taking the
commission into account).
Question 1: Is this correct?
Question 2:
Now I have umpteen lots of Exxon shares (each just a
fraction over 1 share). What is the cost basis here? How
can I calculate into the basis the taxes I already paid on
these shares? Or can I not do that?
Thanks in advance for your insights.
--
Best regards
Han
email address is invalid
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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