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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.
EDIT: Just realized this is in the wrong forum, my apologies. I’ll re-post in the correct one.
- The topic ‘Individual Stock Dividends’ is closed to new replies.
