- quote -

The basis is what you paid for it or the value when you
inherited it, UNLESS, you have reinvested dividends along
the way. If you have, add all the dividends you already
paid tax on. This can get very complicated if you sell the
stock a little bit at a time. If you do it all at once, it
is just an addition problem. Add up all the bits and pieces
you have bought over the years and that is the total basis.

All freely provided advice guarantee correct or double your
money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA

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lilmslady48[at]hotmail.com (lilmslady48) writes:

- quote -

I'm going to assume that you meant a two for one split. For
example, if you owned 100 shares before the split you had
200 after.

- quote -

Your basis in the inherited shares is $14 per share.

Since you acquired the inherited shares later if you want to
sell some of them you must specify what you're selling and
get confirmation from the broker at the time of sale.
Otherwise you will have been considered to sell the older
shares.

Phil Marti
Topeka, KS

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I currently own a stock at Approx. $30 per share. I
inherited this stock 4 years ago. The price of the stock at
time of inheritance was $28, and it has split one share for
1 share since that time. I also, own a separate block of
shares in this same stock that I have had since the 1970s
with a tax basis of approx $10 per share.

This is a very interest rate sensitive stock and I would
like to lessen my ownership of it and would like to know the
amount of taxable income before making the decision on what
to sell. I have a pretty simple tax form otherwise and do
my own taxes, so I don't have an accountant to ask. I
appreciate any help.

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