## How to calculate cost basis for reverse stock split

Chances are, if you invest in a growing company over a long period, you will experience a stock split. But what exactly is a stock split and how does it impact your cost basis, which is used to calculate capital gains taxes? There are two types of stock splits: forward and reverse. The most common How to Calculate Basis for Stocks When the Stock Splits and You Only Sell Partial Shares. Divide the total cost by the number of shares you own after the split to calculate the adjusted cost basis. In the example, $1,150 divided by 82.5 calculates an adjusted cost basis of $13.94 per share. How to Calculate the Cost Basis of Stock Funds How to Account for a Cash Out Due to Reverse Stock Splits. A reverse stock split is when a company reduces the number of its outstanding shares, but without changing the total value of the shares. For example, if a company enacts a 2-for-3 reverse stock split, then the shareholders would end up with two shares for You currently own 18 shares (after the 10:1 reverse stock split), with an original cost basis of $6,894, in total. Therefore, $6,894 divided by 18 = $383 per share. Hence, your per share basis, which you would use to determine gain or loss for tax purposes if you sell, is $383 a share.

## How to Account for a Cash Out Due to Reverse Stock Splits. A reverse stock split is when a company reduces the number of its outstanding shares, but without changing the total value of the shares. For example, if a company enacts a 2-for-3 reverse stock split, then the shareholders would end up with two shares for

STOCK SPLITS: Here is an example of how to record a stock split. Assume that you bought 100 shares of IBM on 4/2/2000 for $2000.00 On 5/2/2001, IBM declared a four for one stock split and you received 300 additional shares. Your original cost basis for 100 shares was $20.00 per share, total cost $2,000.00 Chances are, if you invest in a growing company over a long period, you will experience a stock split. But what exactly is a stock split and how does it impact your cost basis, which is used to calculate capital gains taxes? There are two types of stock splits: forward and reverse. The most common How to Calculate Basis for Stocks When the Stock Splits and You Only Sell Partial Shares. Divide the total cost by the number of shares you own after the split to calculate the adjusted cost basis. In the example, $1,150 divided by 82.5 calculates an adjusted cost basis of $13.94 per share. How to Calculate the Cost Basis of Stock Funds How to Account for a Cash Out Due to Reverse Stock Splits. A reverse stock split is when a company reduces the number of its outstanding shares, but without changing the total value of the shares. For example, if a company enacts a 2-for-3 reverse stock split, then the shareholders would end up with two shares for You currently own 18 shares (after the 10:1 reverse stock split), with an original cost basis of $6,894, in total. Therefore, $6,894 divided by 18 = $383 per share. Hence, your per share basis, which you would use to determine gain or loss for tax purposes if you sell, is $383 a share. Repeat Step 2 for each stock split to calculate your new stock basis. Continuing the example, if your second split is a reverse split for which you get one new share for every two old share, or 0 The cost basis of any investment is the original value of an asset adjusted for stock splits, dividends, and capital distributions. It is used to calculate the capital gain or loss on an

### How to Figure the Average Cost Basis After a Reverse Stock Split. Reverse stock splits occur when the company reduces the number of outstanding shares by converting a specified number of old

How to Calculate a Stock Split Basis. Regardless of the type of split, it will affect the basis price at which you bought the stock. Failure to take this issue into account when computing capital gains and losses can result in substantial under reporting of income on your 1040 to the Internal Revenue Service (IRS). STOCK SPLITS: Here is an example of how to record a stock split. Assume that you bought 100 shares of IBM on 4/2/2000 for $2000.00 On 5/2/2001, IBM declared a four for one stock split and you received 300 additional shares. Your original cost basis for 100 shares was $20.00 per share, total cost $2,000.00 Chances are, if you invest in a growing company over a long period, you will experience a stock split. But what exactly is a stock split and how does it impact your cost basis, which is used to calculate capital gains taxes? There are two types of stock splits: forward and reverse. The most common How to Calculate Basis for Stocks When the Stock Splits and You Only Sell Partial Shares. Divide the total cost by the number of shares you own after the split to calculate the adjusted cost basis. In the example, $1,150 divided by 82.5 calculates an adjusted cost basis of $13.94 per share. How to Calculate the Cost Basis of Stock Funds

### How to Calculate Basis for Stocks When the Stock Splits and You Only Sell Partial Shares. Divide the total cost by the number of shares you own after the split to calculate the adjusted cost basis. In the example, $1,150 divided by 82.5 calculates an adjusted cost basis of $13.94 per share. How to Calculate the Cost Basis of Stock Funds

You currently own 18 shares (after the 10:1 reverse stock split), with an original cost basis of $6,894, in total. Therefore, $6,894 divided by 18 = $383 per share. Hence, your per share basis, which you would use to determine gain or loss for tax purposes if you sell, is $383 a share.

## You currently own 18 shares (after the 10:1 reverse stock split), with an original cost basis of $6,894, in total. Therefore, $6,894 divided by 18 = $383 per share. Hence, your per share basis, which you would use to determine gain or loss for tax purposes if you sell, is $383 a share.

Chances are, if you invest in a growing company over a long period, you will experience a stock split. But what exactly is a stock split and how does it impact your cost basis, which is used to calculate capital gains taxes? There are two types of stock splits: forward and reverse. The most common How to Calculate Basis for Stocks When the Stock Splits and You Only Sell Partial Shares. Divide the total cost by the number of shares you own after the split to calculate the adjusted cost basis. In the example, $1,150 divided by 82.5 calculates an adjusted cost basis of $13.94 per share. How to Calculate the Cost Basis of Stock Funds

How to Calculate a Stock Split Basis. Regardless of the type of split, it will affect the basis price at which you bought the stock. Failure to take this issue into account when computing capital gains and losses can result in substantial under reporting of income on your 1040 to the Internal Revenue Service (IRS). STOCK SPLITS: Here is an example of how to record a stock split. Assume that you bought 100 shares of IBM on 4/2/2000 for $2000.00 On 5/2/2001, IBM declared a four for one stock split and you received 300 additional shares. Your original cost basis for 100 shares was $20.00 per share, total cost $2,000.00 Chances are, if you invest in a growing company over a long period, you will experience a stock split. But what exactly is a stock split and how does it impact your cost basis, which is used to calculate capital gains taxes? There are two types of stock splits: forward and reverse. The most common How to Calculate Basis for Stocks When the Stock Splits and You Only Sell Partial Shares. Divide the total cost by the number of shares you own after the split to calculate the adjusted cost basis. In the example, $1,150 divided by 82.5 calculates an adjusted cost basis of $13.94 per share. How to Calculate the Cost Basis of Stock Funds How to Account for a Cash Out Due to Reverse Stock Splits. A reverse stock split is when a company reduces the number of its outstanding shares, but without changing the total value of the shares. For example, if a company enacts a 2-for-3 reverse stock split, then the shareholders would end up with two shares for