How to Figure the Average Cost Basis After a Reverse Stock Split. Reverse stock splits occur when the company reduces the number of outstanding shares by converting a specified number of old 4. Split-off exchange ratio (number of split-off shares received for each original share exchanged) 5. Purchase date for original stock (mm/dd/yyyy) 6. Number of shares of original stock prior to split-off (no commas) 7. Total cost basis for original stock, including commissions and fees, adjusted for previous spinoffs (total, not per share How to calculate your cost basis and access cost basis worksheets. Using your own records, determine the date you acquired your shares and the cost per share at that time. If you acquired your shares through participation in the dividend reinvestment plan, use your own records to compute the average cost of all shares purchased through the plan. If a company declares a stock split, the cost basis of your old shares is evenly split between the old and new shares. Say, you own 1,000 shares with a cost basis of $20/share ($20,000 basis). The company does a two for one stock split. Now, that $20,000 basis is split between 2,000 shares with a $10/share basis. ETF Cost Basis In a two-for-one split, for example, each share becomes two, and the cost basis is cut in half. Reinvested dividends, on the other hand, are added to the cost basis. Your Cost Basis: How to Calculate It and What It Means When a stock splits, so does your basis. Splits What happens to your cost basis if your stock splits? Well, it splits, too.
How to Figure the Average Cost Basis After a Reverse Stock Split. Reverse stock splits occur when the company reduces the number of outstanding shares by converting a specified number of old 4. Split-off exchange ratio (number of split-off shares received for each original share exchanged) 5. Purchase date for original stock (mm/dd/yyyy) 6. Number of shares of original stock prior to split-off (no commas) 7. Total cost basis for original stock, including commissions and fees, adjusted for previous spinoffs (total, not per share How to calculate your cost basis and access cost basis worksheets. Using your own records, determine the date you acquired your shares and the cost per share at that time. If you acquired your shares through participation in the dividend reinvestment plan, use your own records to compute the average cost of all shares purchased through the plan. If a company declares a stock split, the cost basis of your old shares is evenly split between the old and new shares. Say, you own 1,000 shares with a cost basis of $20/share ($20,000 basis). The company does a two for one stock split. Now, that $20,000 basis is split between 2,000 shares with a $10/share basis. ETF Cost Basis
8 Nov 2014 But what exactly is a stock split and how does it impact your cost basis, which is used to calculate capital gains taxes? There are two types of Stock splits occur periodically and give shareholders new shares based on the number of shares they previously Repeat Step 2 for each stock split to calculate your new stock basis. tax forms image by Chad McDermott from Fotolia.com Adjust your stocks cost basis for splits and reverse splits. Calculate your gain or loss on cash received in lieu of fractional shares using our free calculator.
The Actual Price is not adjusted for splits or dividends. The Split Adjustment Factor is a cumulative factor which encapsulates all
Stock Splits & Cash Dividends Stock Splits & Dividends (NASDAQ - FFBC) You should consult a tax advisor regarding the calculation of your tax basis.