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Level 2
posted Apr 17, 2022 4:56:37 PM

Cost basis from a stock dplit

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

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2 Replies
Level 7
Apr 17, 2022 5:28:45 PM

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
Apr 20, 2022 9:20:42 PM

Thanks for replying to my tax question.