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Ask Lane Your Own Question
Category: Capital Gains and Losses
Satisfied Customers: 12675
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: 1 year ago.
Category: Capital Gains and Losses
Expert:  Lane replied 1 year ago.



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


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


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


Let me know if you have questions