Cost Basis (Revisit)

[Christian]

Thanks for y'all's input. A comment by ATX Master left me puzzled however. There were no reinvested dividends so that is of no concern. The securities have appreciated since he bought them. Should she sell these stocks I would expect her to pay capital gains tax on the increased value over what her former husband paid for the stocks. Your comment about adjusting the basis I did not fully understand.

[kcjenkins]

Gail just was pointing out that if there had been reinvested dividends you would have to look at two different groups of shares, the original ones and the ones bought with the dividends.

By the way, her username is Gailtaxed, ATX Master is a classification that indicates the level of input on this board. New members like yourself are classed as Newbie, and as your number of posts increase, you will move up to higher classifications.

[Christian]

That clarifies it completely. Although I have been preparing taxes for some thirty years it's nice being considered a newbie.

[kcjenkins]

You are certainly a welcome 'newbie' here. The classifications really do not mean much, it's sort of a 'fun' designation, but does give you a clue, if you find yourself interested in or questioning a post, whether there is a good buildup of posts from that person, which you can go look at by clicking on their pic and choosing to look at their other posts.

And rarely, but occasionally, it's indicated a 'troll' who either just got on here to push some company or product, or to attack someone, or posted under a different name, possibly for the same reasons. We do not take kindly to such posts, and delete them when we find them.