As explained on the Stock Rights page of this website, you may allocate your cost basis to stock rights that you receive which represent less than 15% of the combined value of the rights plus original stock. If the rights represent more than 15% of the combined value, you must allocate your cost basis; it is not optional.
Optional cost basis allocation is elected by attaching a statement to your tax return.
Click on the image to the right to access the Stock Rights Calculator for easy computation of your cost basis allocation for stock rights issued by companies you own.
Data for recent stock rights issuances such as Lloyds Banking Group, Bank of Ireland, National Grid plc, and HSBC are pre-loaded in the calculator for you.
