Individual Stock Dividends

  • Creator
    Topic
  • #196062
    evp490
    Participant

    I ran into a little speed bump today, but I think I have it sorted out, but I just want to make sure.

    -If receive Common Stock dividend on Common Stock, then the basis is OrigCost/Total # Shares

    -If receive Preferred Stock dividend on Common Stock, then you allocate the original basis according to FV ratio

    -If receive Common Stock dividend on Preferred Stock, then the basis is the FV of the distributed shares, since a stock dividend on PS is taxable.

  • The topic ‘Individual Stock Dividends’ is closed to new replies.