Hello,
I bought some shares of stock at a company I worked at back in 1999, and there was a stock share split in 2000 and another in 2005. The only shares I bought were the one lot in 1999. The company was recently bought out and one option is to sell all my shares for cash. When it comes to the tax on the gain would I only factor the original lot or would I also want to factor in the 2 times the stock spilt?
Any advice would be greatly appreciated.
Thank you.
Thanks Alan. So if I bought the shares in 1999 and there were spilts in 2000 and 2005 and I’m going to sell it all then I woud just need to know the details from the first buy in 1999? The transfer agent changed a few times and I’m having a hard time getting a copy of the 2005 statement for that spilt.
Yes, you just need the total dollar amount you paid for the shares. If you did not sell all the shares, and purchased them at different times in 1999, then you would need to determine which shares you sold and the cost paid for the shares you did sell. Much simpler if you sell them all. Your basis is total paid, and amount received will show on your 1099B. Gain will be taxed at lower LT rates.
Permalink Submitted by Alan - IRA critic on Tue, 2021-03-23 16:11
Your basis per share is adjusted for every stock split. But if you plan to sell all the shares, all you need to know is the amount you paid for the shares, plus any reinvested dividends if applicable.