Schedule D and cost basis

[chipy]

trying to get a head start on 2011 taxes... question:

if i bought 100 shares @ $10 (+ $7 buy commission)
and sold 10 shares @ $20 (+ $7 sell commission)
and sold 20 shares @ $30 (+ $7 sell commission)
and sold 30 shares @ $40 (+ $7 sell commission)
and sold 40 shares @ $50 (+ $7 sell commission)

when i go to calculate capital gains for each of the "sells", how do i calculate cost basis of the buy commission? do i weight the $7 by the number of shares? e.g. 10/100 = .10 * $7

i wanted to lump all the shares together for one stock and come up with a net gain but looking at the Schedule D it's asking for buy and sell dates so i'm guessing i have to break it out.

TIA, chipy

 

[EagleKeeper]

Figure the cost of shares as the percentage of the commission plus share cost. That is what is used to figure our profit and tax.

 

[JEDI]

costs = 1007
sold = 193+593+1193+1993
profit = sold - cost

date sold = various

 

[iGas]

..

 

[FelixDeCat]

Lot price plus comission is divided by each share purchased times the number of shares sold in each transaction.

 

[The-Noid]

trying to get a head start on 2011 taxes... question:

if i bought 100 shares @ $10 (+ $7 buy commission)
and sold 10 shares @ $20 (+ $7 sell commission)
and sold 20 shares @ $30 (+ $7 sell commission)
and sold 30 shares @ $40 (+ $7 sell commission)
and sold 40 shares @ $50 (+ $7 sell commission)

when i go to calculate capital gains for each of the "sells", how do i calculate cost basis of the buy commission? do i weight the $7 by the number of shares? e.g. 10/100 = .10 * $7

i wanted to lump all the shares together for one stock and come up with a net gain but looking at the Schedule D it's asking for buy and sell dates so i'm guessing i have to break it out.

TIA, chipy

I am fairly sure it's not going to matter anymore. Part of one of the tax acts in 2009 is that all cost basis has to be reported on 1099-B starting in 2011. Should also include all implementation costs, i.e. commission or spread on a principal basis.

Edit a quick google search... http://www.groco.com/readingroom/invest_stock_basis_reporting.aspx

 

[glenn1]

trying to get a head start on 2011 taxes... question:

if i bought 100 shares @ $10 (+ $7 buy commission)
and sold 10 shares @ $20 (+ $7 sell commission)
and sold 20 shares @ $30 (+ $7 sell commission)
and sold 30 shares @ $40 (+ $7 sell commission)
and sold 40 shares @ $50 (+ $7 sell commission)

when i go to calculate capital gains for each of the "sells", how do i calculate cost basis of the buy commission? do i weight the $7 by the number of shares? e.g. 10/100 = .10 * $7

i wanted to lump all the shares together for one stock and come up with a net gain but looking at the Schedule D it's asking for buy and sell dates so i'm guessing i have to break it out.

TIA, chipy

If you purchased them during 2011, then your broker-dealer is required to provide the cost basis information for you; so you can just use that.

 

[chipy]

first off, thanks to everyone who responded!

Noid, i looked at a 1099-b form after you mentioned it but the form has a sale date, acquisition date, cost basis, etc... but the Schedule D also has those requirements as well so i'm not sure if it's any different from my question's perspective.

I am fairly sure it's not going to matter anymore. Part of one of the tax acts in 2009 is that all cost basis has to be reported on 1099-B starting in 2011. Should also include all implementation costs, i.e. commission or spread on a principal basis.

Edit a quick google search... http://www.groco.com/readingroom/invest_stock_basis_reporting.aspx

 

[IHateMyJob2004]

Don't forget those tiny fees that add up to many many pennies for most.

SEC fees or some crap. Should be on your statments.

 

[The-Noid]

first off, thanks to everyone who responded!

Noid, i looked at a 1099-b form after you mentioned it but the form has a sale date, acquisition date, cost basis, etc... but the Schedule D also has those requirements as well so i'm not sure if it's any different from my question's perspective.

1099-B is what your broker reports. You report it on schedule D of your tax return. If those don't match up in the future it is going to be audit city.

In the past people put higher cost basis for securities to pay different tax or did the "various" line to alleviate some short-term cap gains for long-term. Now everything should be reported for you, so you need to make these items match up. i.e. If your reported income doesn't match your W-2 you're going to get an audit.

Take into account I am not a CPA and this isn't in anyway tax advice. Consult your own CPA...