Timeline for What is the cost basis of fractional shares closed during stock-split from multiple lots?
Current License: CC BY-SA 4.0
7 events
| when toggle format | what | by | license | comment | |
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| Apr 29, 2020 at 15:00 | vote | accept | Laith | ||
| Apr 26, 2020 at 11:08 | comment | added | Bob Baerker | In IRS Publication 550, find the section titled Distributions of Stock and Stock Rights. Then go to the sub section titled Fractional Splits. It spells out how to determine the cost basis of the shares being sold. | |
| Apr 26, 2020 at 8:55 | comment | added | Pascal Belloncle | unless the broker doesn't sell just .11, but all the fractional shares from each lot, then you'd end up with non fractional lots, and easy to figure out which bit is long term, and which is short term (to answer an other comment from @Laith | |
| Apr 26, 2020 at 8:44 | comment | added | Pascal Belloncle | sorry, the quote from my comment above is actually from a different page irs.gov/faqs/capital-gains-losses-and-sale-of-home/… although you end up with fractional lots in this case. Clearly you can't instruct your broker to sell a lot with fractional shares, even though there are now brokers that will let you do this, but most don't. | |
| Apr 26, 2020 at 3:14 | comment | added | Pascal Belloncle | @BobBaerker from the same link I provided, it says "you must adjust your basis per share or per the lots of the stock you own" so if you are doing lot by lot, this still applies, unless I'm missing something, I'm not an accountant :) What you are suggesting in one possible approach | |
| Apr 25, 2020 at 23:43 | comment | added | Bob Baerker | The fractional shares sold as the result of the split are no different than if you had sold those shares on the same date. No, it doesn't work that way (see my answer). | |
| Apr 25, 2020 at 23:20 | history | answered | Pascal Belloncle | CC BY-SA 4.0 |