How do I find the cost basis of AT&T stock? (2024)

How do I find the cost basis of AT&T stock?

Using your own records, first determine the date you acquired your shares and the cost per share at that time. If you acquired your shares through participation in the dividend reinvestment plan, use your own records to compute the average cost of all shares purchased through the plan.

What is the cost basis of AT&T?

The cost basis is how much you paid for your shares after you take into account stock splits, acquisitions and other events.

How do you find the cost basis of a stock?

Take the original investment amount ($10,000) and divide it by the new number of shares you hold (2,000 shares) to arrive at the new per-share cost basis ($10,000/2,000 = $5). Take your previous cost basis per share ($10) and divide it by the split factor of 2:1 ($10.00/2 = $5).

What is the basis for Warner Brothers spinoff cost?

Warner Brothers Discovery began normal trading on 11 April 2022. AT&T shareholders received 0.241917 shares of WBD for each share of T owned. NOTE: The cost basis allocation is dependent on the prices used for both AT&T and Warner Brothers Discovery in the cost basis allocation calculations.

How do you calculate cost basis for stock merger?

How do I determine the value of the shares of a publicly traded stock I received in a merger? The initial cost basis would be the stock's price at the time you obtained the shares. So if you had ten shares at $10 per share, your cost basis is $100. If you sell the 10 shares at $11 per share, your capital gain is $10.

What is the cost basis of Computershare?

Cost Basis (also Tax Basis) – The original value of an asset for tax purposes (usually the purchase price), adjusted for stock splits, dividends and return of capital distributions. This value is used to determine the capital gain.

How do you calculate cost basis after a stock split?

A stock split does not change your total cost basis, but it does change your cost basis per share. To calculate your new cost basis per share, you need to divide your original cost basis by the number of new shares you receive.

What if I can't find the cost basis of a stock?

What to do if cost basis is unknown?

In this case, you should refer to the original brokerage statement detailing the purchase of that security or contact your former broker to determine the Date Acquired and Cost Basis (what you paid for the security) and enter it manually into your tax preparation software or onto your Form 8949.

How does IRS verify cost basis?

Purchase Records

If you purchased the asset, documents from the original sale are the preferred option for verifying cost basis. This can include any brokerage statements, commission statements or other proof of purchase for securities that you purchased.

What happens to cost basis in a spinoff?

Spin-offs not only require a distribution ratio to determine the number of new shares to be received, but a New Cost Allocation % is required for the transferring of cost basis. This percent alters the per share cost basis of the original security and determines the per share cost basis of the new security.

Is ATT spinoff taxable?

The spinoff of the Warner Bros. Discovery stock is tax-free to AT&T holders. It is only when investors sell either their AT&T or Warner Bros. stock that taxes could be due.

How to handle the taxes on the att spinoff of Warner Bros?

The spinoff of Warner Bros Discovery shares is not a taxable event, which means that AT&T shareholders who do nothing should incur no tax liability. However, the selling of stock in Warner Bros Discovery constitutes a taxable event. This is how it would operate.

Why is cost basis not reported to IRS?

Traders who sell securities purchased prior to the dates listed above may not see cost basis information included on their 1099-B, or it may be incomplete. This doesn't mean the non-covered cost basis isn't reportable; rather, it's not required to be reported by a broker to the IRS.

Can I use average cost basis for stocks?

Average Cost

This method of calculating cost basis is permitted for mutual funds only and cannot be used to calculate cost basis for individual securities such as stocks and bonds.

What is the difference between cost basis and market value?

While cost basis is the original price you paid for an investment, market value is the current price at which you could sell it.

Does Computershare keep track of cost basis?

Covered means that transfer agents, such as Computershare, are required by the IRS to report cost basis to the individual and the IRS for such securities.

Do transfer agents track cost basis?

According to IRS regulations, transfer agents are required to record cost basis data and provide it to brokers when transferring shares.

How do you calculate cost basis with reinvested dividends?

The simplest way to keep track of your cost basis is to note the amount of dividends on which you're taxed from year to year. By adding those amounts to what you originally paid for shares, you'll accurately reflect your total cost basis for the position.

How do you report cost basis for noncovered shares?

While a broker will still report the cost basis to the investor or taxpayer, it is up to the investor to report this information to the IRS through Schedule D on Form 1040 for any shares sold, whether covered or non-covered.

How do you calculate cost basis with dividends?

Your basis in shares purchased through a dividend-reinvestment plan is the stock's cost. Thus, if you have $500 in dividends reinvested and it buys you 30 additional shares, your basis in each share would be $16.67 ($500 divided by 30).

What happens if 1099 B does not show cost basis?

The Form 1099-B that you receive might only report the sale date and sales proceeds. If it does not report the date acquired or cost basis, you still need to enter that information when you report your Form 1099-B in the TaxAct program so that it will transfer to Schedule D and/or Form 8949.

Can you sell stock without cost basis?

If you sell an investment such as a stock or mutual fund, the IRS requires that you report any capital gains or losses along with cost basis information.

Do brokers report cost basis to IRS?

Reporting rules for cost basis

Brokerage firms are only required to report your cost basis to the IRS when you sell an investment purchased after one of the following dates: Equities (stocks, including real estate investment trusts, or REITs) acquired on or after January 1, 2011.

What is an example of a cost basis?

For example, let's say an investor bought 10 shares of ABC company for a total investment of $1,000 plus a $10 trading fee. The investor receives dividends of $200 in year one and $400 in year two. The cost basis would be $1,610 ($1,000 + $10 fee + $600 in dividends).