Calculating cost basis of stock split

2020-02-26 07:24

How can the answer be improved?Your original cost basis for 100 shares was 20. 00 per share, total cost 2, 000. 00 Your adjusted cost basis for 400 shares is now 5. 00 per share, total cost 2, 000. 00 On, XYZ declared a reverse one for ten stock split. Your original cost basis for 1, 000 old shares was 20. 00 per share, total cost calculating cost basis of stock split

Regardless of whether your stock splits, remember to factor in your transaction costs when calculating your cost basis. For instance, if you buy 100 shares of Nike at 50 a share and pay 10 in commission, your cost basis per share is actually 50. 10 a share.

Stock splits and capital gains taxes. If you sell the 20 shares of stock for 50 per share, you will have a capital gain of 750 (50 selling price x 20 shares less 12. 50 adjusted cost basis x 20 shares). So you pretty much end up in the same place with minor differences for price fluctuations in Divide the total cost by the number of shares you own after the split to calculate the adjusted cost basis. In the example, 1, 150 divided by 82. 5 calculates an adjusted cost basis of 13. 94 per share. calculating cost basis of stock split The calculator also works for reverse splits and for dividends paid in stock, rather than cash (unless they are payment in kind dividends. ) The calculator can be used for the new cost basis of the 3 stock dividend usually paid by Tootsie Roll (TR) annually. This is simply a

How to Calculate a Stock Split Basis. You must use the postsplit basis if you only sell part of your basis. If you bought 100 shares of stock at 50 per share and it splits four for one, then you own 400 shares with a basis of 12. 50 per share. If you sell 100 shares at 25 per share, then your basis will be 1250 plus commission, and your sale price will be 2500 minus commission. calculating cost basis of stock split More Articles. Divide your per share basis by the number of new shares you received for each old share in the first stock split. For example, if your stock split five new shares for every old share, divide 25 by 5 to get a new basis of 5 per share. Repeat Step 2 for each stock split to calculate your new stock basis. How Stock Splits Affect Cost Basis. You can calculate your cost basis per share in two ways: Take the original investment amount (10, 000) and divide it by the new number of shares you hold (2, 000 shares) to arrive at the new per share cost basis (10, 0002, 0005. 00).

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