Tax Base of questions after a split or merger?
Suppose I bought 1 share of X stock on two occasions, one for $ 5, and one for $ 10, much more than a year. Therefore, I have two shares with a total cost of $ 15. Then, suppose that the population has a 2 for 1 match, I gives two shares for a total of 4. If I sell 2 of the 4 actions, and I'm using the FIFO method, which is the basis of these actions? I see two possibilities: 1. Both actions arose in the $ 5 fee first, and thus the basis is $ 5. 2. I sold the first two stocks I bought, which were before the split. I bought the two actions $ 15, but that the accounting division, the average cost to $ 7.50. Would the answer be different if you substitute "split" with the "merger" perhaps in the case of 2 X stock shares were replaced by 4 actions and actions? I guess the real question is whether the population is growing start-ups or merely "converted" from one form to another.
wow your taking this way to difficult … Do not worry about the number of shares that irrelavant. You sold the shares to $ 10 per share say thats a selling price of $ 20. Now you have to worry about the cost so you have 2 options to choose to sell the first purchase made at a cost of 5. Or you chould choose to sell the second purchase at a cost of $ 10. DONT THINK ABOUT NUMBER OF SHARES. Descr. Property / pdate / sDate / Spric / Cost / Profit or Loss of Company X / 04/04/03 / 05/05/06 / $ 20 / $ 5 / profit of $ 15 or Descr. Property / pdate / SDate / Spric / Cost / Gain or loss of company X / 06/07/04 / 05/05/06 / $ 20 / $ 10 / $ 10 of profit of their choice split, merger … its doesn't matter the cost you had of buying and selling price if their separation is 100,000 times the value the same and so is the cost of
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