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Conference nyoss1::market_investing

Title:Market Investing
Moderator:2155::michaud
Created:Thu Jan 23 1992
Last Modified:Thu Jun 05 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1060
Total number of notes:10477

968.0. "Tax question on splits" by SUBSYS::BATTISTINI () Mon Jan 22 1996 15:10

  

	I have a tax question. Lets say you buy a stock at X dollars and it splits several times 
over the years, then you sell some stock at a dollar value that is less than X, but you made a 
large capital gain. How does the IRS track this gain? On the surface it looks like a capital loss.

thanks,

Rich
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968.1Net Totals are what counts...DZIGN::HABERJeff Haber..SBS IM&T Consultant..223-5535Mon Jan 22 1996 17:277
    Sorry, they're smarter than that...  the numbers that matter are your
    basis (i.e.- how much YOU spent for the stock including commission) and
    how much you received on the sale (NET).  The difference is your profit
    or loss.  The price/share is only relevant in filling out the form, but
    the numbers must tie to the NET totals in and out...
    
    /jeff
968.2.0 formatted for 80 columns so everyone can read it2155::michaudJeff Michaud - ObjectBrokerMon Jan 29 1996 19:5513
Note: 968.0
Author: SUBSYS::BATTISTINI
Topic: Tax question on splits
Date: 22-JAN-1996 15:10

	I have a tax question. Lets say you buy a stock at X dollars and it
	splits several times over the years, then you sell some stock at a
dollar value that is less than X, but you made a large capital gain. How does
the IRS track this gain? On the surface it looks like a capital loss.

thanks,

Rich