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celiahmail
New Member

Capital gains question -- if I sold 100 shares of stock that originally cost me $55 a share, what is the amount I should enter in the Cost column on my return

 
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DJS
Level 7
Level 7

Capital gains question -- if I sold 100 shares of stock that originally cost me $55 a share, what is the amount I should enter in the Cost column on my return

If you simply sold the original 100 shares then you would report the cost as 100*55 ($5500) plus commissions that you paid on the purchase. However, if for instance there had been a split (say 2:1), and you now held 200 shares and sold 100, the cost of the 100 that you sold would be 1/2 the cost of the original 100 that you purchased (100*27.5 plus 1/2 the original commission). Had there been a spin off and you received other stock or cash as a result then the "cost" calculation can get more complicated and depend on the particular rules of the reorganization. 

Answers are correct to the best of my ability but do not constitute legal or tax advice.
**If this post is helpful please click on "thumbs up"**

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2 Replies
Critter1
New Member

Capital gains question -- if I sold 100 shares of stock that originally cost me $55 a share, what is the amount I should enter in the Cost column on my return

You enter the current basis in the stock .... the original cost adjusted by any stock splits or spin offs. If the stock never split or had a spin-off then 100 times $55.
DJS
Level 7
Level 7

Capital gains question -- if I sold 100 shares of stock that originally cost me $55 a share, what is the amount I should enter in the Cost column on my return

If you simply sold the original 100 shares then you would report the cost as 100*55 ($5500) plus commissions that you paid on the purchase. However, if for instance there had been a split (say 2:1), and you now held 200 shares and sold 100, the cost of the 100 that you sold would be 1/2 the cost of the original 100 that you purchased (100*27.5 plus 1/2 the original commission). Had there been a spin off and you received other stock or cash as a result then the "cost" calculation can get more complicated and depend on the particular rules of the reorganization. 

Answers are correct to the best of my ability but do not constitute legal or tax advice.
**If this post is helpful please click on "thumbs up"**
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