Here is the answer to your question: Is the reinvestment of dividends considered "purchasing" after December 2011?
- Yes, absolutely. One of two options is chosen when you own stock, you either receive the dividends in cash or your choose to have all dividends reinvested. Any reinvested dividend is purchasing the same stock and it can be fractional shares. In other words the dividend may not be enough to purchase a whole stock, but a fractional share in some cases. This is a necessary record keeping activity because an 'average cost basis' is not allowed under the tax law for stocks.
- And Yes, if you owned the stock before December 31, 2011, then you have purchases from your reinvested dividends from then until the present (and ongoing). If you have always had this with the same broker they may be able to give your your history. If not, you will need to create it on your own whether or not you have accumulated records.
- It's not difficult but is can be time consuming. There are websites that can give stock values on any day or year but you need to know the reinvested dividend dates for every period where that has taken place (usually quarterly).
- @MaggieMae11
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