Hello!
Trying to figure out a cost basis here for a stock sale and I’m inside out on the process. Done a lot of reading but maybe y’all can correct my process?
I sold stock in 2020. The cost basis is missing - it’s a long-held stock.
I know the purchase date of the original shares and looked up their historical value.
I know the stock had 3 splits between purchase and sale (2:1, 2:1, 7:1)
Knowing the number of shares I’ve sold (291) I can go backward to find the number of original shares:
291/7/2/2 = 10.39 original shares.
Taking the original share number (10.39) * the referenced historical High (0.232143 /share) = the original value of the shares sold ($2.41)
(NOTE: How do I know which value High, Low, Close, Adjusted Close is the one to value the original stock purchase at?)
The cost basis is then the value of the shares purchased ($2.41)
That will give me my capital gains for a long-term gain taking the sell price of 291 shares minus the $2.41 original stock purchase correct?
Assuming I’m anywhere close to this point - I know dividends also play a factor. There were a few times I cashed out but predominately were reinvested dividends. I know I’d have already paid taxes on the cashed out dividends but am still confused about how reinvested dividends would affect the cost basis I need to report.
Help! Thanks.
