How can I determine the cost basis for Capital One Stock that I got as a result of the spin-off from Signet Bank?
Not only do you need to determine the cost basis for the Capital One Common Stock that you received, you also need to determine a new cost basis for your Signet Common Stock, which changed as a result of the Capital One distribution. For every share of Signet Common Stock that you held at the time of the distribution, you received one share of Capital One Common Stock. The cost basis for tax purposes for your Capital One Common Stock is 49.31 percent of the price that you paid (adjusted for any stock splits) for each share of the Signet Common Stock that you held at the time of the Capital One distribution. The cost basis for tax purposes for your Signet Common Stock is 50.69 percent of the price that you paid (adjusted for stock splits) for each share of the Signet Common Stock that you held at the time of the Capital One distribution. Your holding time for your Capital One Common Stock will include the holding period for your Signet Common Stock.
Related Questions
- How do I determine the cost basis on the shares of stock (SPEB) and bonds due 2019 that I received upon the company’s emergence from Chapter 11?
- How can I determine the cost basis for Capital One Stock that I got as a result of the spin-off from Signet Bank?
- How do I determine the cost basis of stock bought through an employee stock purchase plan (ESPP)?
