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Level 2
April 17, 2022
Question

Cost basis from a stock dplit

  • April 17, 2022
  • 1 reply
  • 0 views

Help ! How do I compute the cost basis of a stock resulting from a stock split ?

1 reply

Level 7
April 18, 2022

I suggest you refer to https://www.irs.gov/faqs/cap[product key removed]s-and-sale-of-home/stocks-options-splits-traders/stocks-options-splits-traders-7

Note that a stock split by itself is not a taxable event.  It only becomes relevant when you sell the stock.

 

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Level 2
April 21, 2022

Thanks for replying to my tax question.