Liquidating dividend cost method

Events such as splits, spin-offs, and liquidations can all affect cost basis.Consider consulting a tax advisor with your specific questions about calculating gains and losses in your individual tax situation.

Cost basis is the original monetary amount paid for shares of a security.

When you buy or sell shares of a security, the cost basis of your position in that security will change.

Depending on the type of security, factors other than the original purchase price of a security can have an impact on cost basis.

If you previously sold shares of the same security, the cost basis of the shares you still own depends on the method that you use to determine cost basis.

Any transaction that increases or decreases the number of shares in a position can affect cost basis.

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