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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (6941)	2/17/2012 4:41:25 PM
From: Boca_PETE	Read Replies (2) \| Respond to of 10065

I2, In computing gain (loss) on the sale of a stock, your cost basis (what you bought it for) must be reduced by any items that represent a "Return of capital" for the period during which you held the stock. If such adjustments exceed the original cost basis, such excess is treated as a capital gain (loss). If the stock was held over 1 year, such capital gain would be treated as "long term". Held less than a year, short term capital gain treatment would apply. (IRC Sec 201(c)) P