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CostBasis.com

Stock changes
Once you have determined your initial cost basis for a stock, you are not done!  You need to adjust your total cost basis and/or cost basis per share whenever events such as the following occur:

  Cash in lieu of fractional shares
  Cash to boot mergers
  Class action claim checks
  Dividends paid in stock
  Preferred Stock OID
  Return of Capital Payments
  Spinoffs
  Split-offs
  Split-ups
  Stock mergers

  Stock splits

 
Stock rights

These stock change events are commonly referred to as "corporate actions,"  "capital changes,"  "corporate reorganizations," or "corporate reorgs."   These events are so common and numerous that your broker/dealer even has an entire department devoted to dealing with them, called the "reorg" department.

The pages on this website will help you understand how to adjust your cost basis for each type of change in your stock.  The calculators will facilitate your computations.


Information provided is intended solely for individual U.S. citizen cash-basis taxpayers and is 
believed to be accurate for most cases.  Always consult your personal tax advisor about your
own situation.  Suggestions are most welcome. Please email webmaster @ costbasis.com with your comments.   
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