ThomasM125
Expert Alumni

Get your taxes done using TurboTax

Since you sold all of the original stock, you can treat the stock purchased with the dividends as non-employee stock to simplify things. If all of the shares were acquired more than a year before they were sold, you can assign a purchase date more than a year before you sold them so the gain on sale will be long term. For shares acquired within a year of sale, choose a date less than a year from the sale date. Any dividends that you reported as income on your tax return would be applied to the cost basis of the shares sold.

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