3377634
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Tax Law Changes - One Big Beautiful Bill on Aug 6! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

trneaville
Returning Member

Stock Splits - Are they realized as long term or short term...

This is an example/scenario only.

 

If 1 stock was purchased over 1 year ago at $10 and didn't split, I understand this is long term capital gains when I would sell it for $20.  Capital gains would be $10.

 

If the same single $10 stock was purchased over 1 year ago but did a 2 for 1 stock split this year and I sell before December 31, what is the implications?

 

I didn't want to assume anything so I'm asking for clarification.  When I sell both stocks at $20 for a profit of $30 (2 x $20 = $40 minus the original price of $10 = $30), would the $30 be considered long term capital gains? 

 

The concern I had is that 1 stock would be long term capital gain and 1 would be short term capital gains.  A simple question but also good to know the answer before taking action and filing 2024 taxes.

 

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
pk
Level 15
Level 15

Stock Splits - Are they realized as long term or short term...

@trneaville , fundamentally , this is no different than  acquiring multiple batches of the same stock over the years ( except that  the split creates new stocks / daughters  where each stock is worth   different  --- original investment divided by the new  total  number of stocks --- i.e. a basis adjustment ).   Thus when you dispose  off the stocks  your basis is different.  This is in contrast to adding new stocks where  you need to keep track of basis  for each acquisition i.e. each batch and when you sell you have tell the  broker which batch you are selling , else it is assumed to FIFO.

 

Does this make sense ?   Is there more I can do for you ?

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question