Reply To: Taxation of DRIP purchases

Home Fairmark Forum Taxation of Investments Taxation of DRIP purchases Reply To: Taxation of DRIP purchases

#3267
kaneohe
Participant

not clear what your situation is: you talk about basis < total value but
then talk about ST and LT losses.

It does appear possible to have AVB for a DRIP. Is that what you have?
(edit to add: I see that’s in the title and only there, tho the content suggests that)

“Average Basis
You can use the average basis method to determine
the basis of shares of stock if the
shares are identical to each other, you acquired
them at different times and different prices and
left them in an account with a custodian or
agent, and either:
• They are shares in a mutual fund (or other
regulated investment company);
• They are shares you hold in connection
with a DRP, and all the shares you hold in
connection with the DRP are treated as
covered securities (defined later); or
• You acquired them after 2011 in connection
with a DRP.”

Not sure what you are trying to accomplish. You seem to have all the info to do the calculations w/ specific shares and are going to sell all the shares? I think the total gain/loss will be the same no matter what method you use but there may be a shift between long/short term results by different methods.

  • This reply was modified 2 years, 4 months ago by kaneohe.
  • This reply was modified 2 years, 4 months ago by kaneohe.