What is the cost basis of the shares I will receive through the stock dividend?
Generally, U.S. federal income tax law requires you to allocate your existing cost basis on a pro rata basis between your old shares and the stock dividend shares (including any fractional shares) you receive. We would recommend that you speak with your tax advisor for assistance in calculating your cost basis.
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 does the stock dividend affect the adjusted cost base when I sell my shares?
- What is the cost basis of the shares I will receive through the stock dividend?
