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Lane
Lane, JD, CFP, MBA, CRPS
Category: Capital Gains and Losses
Satisfied Customers: 10152
Experience:  Have been providing Financial and Tax advice for 30 years.Concentration in Corporations, Estate, Income Tax and Business Planning
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I have a client who purchased stock in 1995 and sold in

Customer Question

I have a client who purchased stock in 1995 and sold in 2015.
They purchased 100 shares at 22.5/share on June 14, 1995 $2,250
326 shares at 10.5/share on 11/14/1997
They sold shares at 55.00/share on 05/27/15 for $ 92,961.16
55.10/share on July 1, 2015 for 6808.53
My questions is they received dividends of $ 16,135 over the years from 1995 through 2015
Since they paid taxes on these dividends already, can I place this figure in the cost of sales
Submitted: 12 months ago.
Category: Capital Gains and Losses
Expert:  Lane replied 12 months ago.

Hi,

...

I hold a JD (Juris Doctorate, a doctoral degree in the law), concentration in Tax Law & Corporate law, an MBA (specialization in finance & tax), and BBA from Mercer University's Stetson School of Business and Economics, as well as CFP and CRPS designations.

I can help here

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No, if they received and paid tax on cash dividends, this wouldn't affect their basis in the stock.

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Only if the dividends were reinvested in new shares would they become part of the basis

...

Let me know if you have questions

...

Lane

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