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mallege
New Member

How do report the cost basis of shares obtained from a stock split

How do I report capital gains of Agilent stock obtained from an HP stock split
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How do report the cost basis of shares obtained from a stock split

DianeW777
Expert Alumni

How do report the cost basis of shares obtained from a stock split

Simple.  A stock split divides your original cost by the total number of shares after the split.

 

  • Example:  If you had a 2 for 1 stock split you now have double the amount of shares. (50 shares x 2 = 100 shares)
    • If you paid $20 per share for the original stock, the cost basis for each share after the split would be $10 per share.
    • All shares have the same holding period as the original shares.

It's important to keep track of all the stock transactions so that you always have the exact cost per share for a point of sale.

 

Enter your 1099-B if you had sales as follows: Wages and Income > Investment Income > Stocks, Mutual Funds, Bonds, Other.  Follow the prompts to enter the 1099-B information.

 

@mallege 

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