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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?


To: Colin Cody who wrote (699)2/10/1999 8:29:00 PM
From: DSPetry  Read Replies (1) | Respond to of 1383
 
Colin,
In laymans terms, is this accurate???
you average your 5 shares together, and use that as
your cost basis, and pay the tax on the difference when you sell...

Buy one share at $1 (Plus 4 free) = 5 shares for $1 (.20 each)
if you sell for $5/share = your taxed on $4.80 income per share???
Excuse the ignorance of the tax laws..
Dave