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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Teflon who wrote (30411)	10/5/1999 11:32:00 AM
From: PMS Witch	Read Replies (1) \| Respond to of 74651

Off topic: Split share's cost base... A simple way of doing the math, if you haven't sold any shares is to add up how much you paid for your stock and divide this amount by the number of shares you have. If you've been both buying and selling some stock, it gets a little harder. You must track your 'total' spent. I add the total cost of my purchases to this total, but, for sales, I subtract the number of shares multiplied by the cost base from this total. This is a royal pain in the rear, but our tax people require things be done this way. Investors who live in areas where shares can be bought and sold separately if segregated can track their trades for tax advantages. In Canada, similar securities must be 'blended' and the average cost base used. Cheers, PW.

To: Teflon who wrote (30411)	10/5/1999 12:15:00 PM
From: taxman	Respond to of 74651

the rules for stock dividends are explained in detail on or about page 40 of the cited document. regards ftp.fedworld.gov

To: Teflon who wrote (30411)	10/5/1999 2:33:00 PM
From: codawg	Read Replies (1) \| Respond to of 74651

Hey Tef, where you been hiding? I'm no accountant, but I did my own taxes until last year, and had to research all of this before. Your cost basis in the new shares is splits with the stock. If you bought 10 shares at $8 and the stock split, you would then own 20 shares with a cost basis of $4. Your new basis in ALL of the 20 shares would be $4. As PMS pointed out, that makes your total cost equal in each case; 420=$80 and 810=$80.