I just sold some stock and am now trying to calculate the cost basis of the stock for US tax purposes.
Say I bought one share of stock X for $100, then a stock split occurs so I now have two shares, and then later I sell those two shares for $150 total ($75/share). Is the cost basis of the sale of those two shares simply $100, or does the 2:1 split complicate things in any way?
You bought 10 shares for $10 each, cost basis of $100. Your shares have done well and today the shares are worth $50 each, your position is worth $500. The company does a two for one split (2:1). You now have 20 shares valued at $25 each, your position is still worth $500 and your cost basis remains $100.
If you sell your whole lot it doesn't make a difference. If you sell only part of your position your cost basis per share is now $100 divided by 20 for $5 per share.
