cost basis on CSCO
| HelpRegister |
cost basis on CSCO How do I find out the cost basis on our club's CSCO? I thought the 30 shares we sold on 12/09/01 was the lot that we bought on 11/20/2000, but when I averaged the other 2 figures, the 3/16/2001 54 shares plus the 1/19/2011 47 shares total price divided by 101 shares does not ... oh I think I just got too confused to finish my math. Can you help me? 01/19/2011 account_sync buy 47.0000 987.00 commission 9.99 12/09/2001 account_sync sell, lot cost basis (30.0000 (1,524.38) sell, LTCG (985.00) sell, commission (45.02) 03/16/2001 account_sync buy 54.0000 1,049.63 commission 15.00 11/20/2000 account_sync buy 30.0000 1,509.38 commission 15.00 thanks a lot, Etana In the valuation report, it says the cost basis is 20.4121 Is this the number I want, computed by bivio? thanks, etana C. Etana Finkler wrote: > How do I find out the cost basis on our club's CSCO? > > I thought the 30 shares we sold on 12/09/01 was the lot that > we bought on 11/20/2000, but when I averaged the other 2 > figures, the 3/16/2001 54 shares plus the 1/19/2011 47 > shares total price divided by 101 shares does not ... oh I > think I just got too confused to finish my math. > > Can you help me? > > 01/19/2011 account_sync buy 47.0000 > 987.00 > commission 9.99 > 12/09/2001 account_sync sell, lot cost basis > (30.0000 (1,524.38) > sell, LTCG (985.00) > sell, commission (45.02) > 03/16/2001 account_sync buy 54.0000 > 1,049.63 > commission 15.00 > 11/20/2000 account_sync buy 30.0000 > 1,509.38 > commission 15.00 > > thanks a lot, > Etana Sorry, this is for The Stockettes club. C. Etana Finkler wrote: > In the valuation report, it says the cost basis is 20.4121 > Is this the number I want, computed by bivio? > thanks, etana > > > C. Etana Finkler wrote: > > How do I find out the cost basis on our club's CSCO? > > > > I thought the 30 shares we sold on 12/09/01 was the lot that > > we bought on 11/20/2000, but when I averaged the other 2 > > figures, the 3/16/2001 54 shares plus the 1/19/2011 47 > > shares total price divided by 101 shares does not ... oh I > > think I just got too confused to finish my math. > > > > Can you help me? > > > > 01/19/2011 account_sync buy 47.0000 > > 987.00 > > commission 9.99 > > 12/09/2001 account_sync sell, lot cost basis > > (30.0000 (1,524.38) > > sell, LTCG (985.00) > > sell, commission (45.02) > > 03/16/2001 account_sync buy 54.0000 > > 1,049.63 > > commission 15.00 > > 11/20/2000 account_sync buy 30.0000 > > 1,509.38 > > commission 15.00 > > > > thanks a lot, > > Etana Dear Etana, The cost basis shown on the valuation report is the total you spent on the Cisco shares you still own divided by the total number of shares you still have. You bought one lot of 54 shares on 3/16/2001 for $1064.63. You bought a second lot of 47 shares on 1/19/2011 for $996.99. ($1064.63+$996.99)/(54+47)= $20.4121 which is the cost basis number shown on the Valuation Statement. In reality, your two lots have different basis. The basis of the first lot is $19.71 per share and the basis of the second lot is $21.21 per share. These are the numbers that will be used to calculate your actual gain/loss when you make sales in the future. I found the cost basis numbers by going to Accounting>Investments and clicking on Cisco. This brings up a list of all the Cisco transactions. You can select edit for any one of them to find out the number of shares purchased and the total spent (including commission). Divide the two to get the cost basis for that lot. -- Laurie Frederiksen Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Laurie: Historically, the gain/loss for capital gain purposes has been calculated using the FIFO method of lots unless the seller went through a formality of written instructions to the broker prior to the sale to sell the lots in a different order. I presume that bivio is programmed to follow the FIFO in calculating captial gains/losses. Starting in 2011, it is possible to give the broker standing instructions to use FIFO, LIFO, or "Tax Advantage" as the order for sale of lots. Our club has choosen the "tax advantage" option; which means lots creating long term losses will be sold first, before lots creating long term capital gains. My questions, will autosync data exchange pick up the different order of lots sold? If not, is there going to be a method to override the FIFO approach? Jack Ranby, Treasurer Grants Partners Investment Club Laurie Frederiksen wrote: > Dear Etana,The cost basis shown on the valuation report is the total you spent on the Cisco shares you still own divided by the total number of shares you still have.You bought one lot of 54 shares on 3/16/2001 for $1064.63. You bought a second lot of 47 shares on 1/19/2011 for $996.99. > ($1064.63+$996.99)/(54+47)= $20.4121 which is the cost basis number shown on the Valuation Statement.In reality, your two lots have different basis. The basis of the first lot is $19.71 per share and the basis of the second lot is $21.21 per share. These are the numbers that will be used to calculate your actual gain/loss when you make sales in the future. > I found the cost basis numbers by going to Accounting>Investments and clicking on Cisco. This brings up a list of all the Cisco transactions. You can select edit for any one of them to find out the number of shares purchased and the total spent (including commission). Divide the two to get the cost basis for that lot. > -- Laurie FrederiksenInvest with your friends!www.bivio.comBecome our Facebook friend! www.facebook.com/bivio > Follow us on twitter! www.twitter.com/bivio I thought that the new tax law requires the brokerage to report the accounting method used to the IRS. Historically, the burden of proof was left to the investor and the brokerage firm did not report cost basis. Thus the investor was always able to specify the accounting method used but generally requested documentation during the sell order. John W Ranby wrote: > Laurie: > > Historically, the gain/loss for capital gain purposes has > been calculated using the FIFO method of lots unless the > seller went through a formality of written instructions to > the broker prior to the sale to sell the lots in a different > order. I presume that bivio is programmed to follow the FIFO > in calculating captial gains/losses. > > Starting in 2011, it is possible to give the broker standing > instructions to use FIFO, LIFO, or "Tax Advantage" as the > order for sale of lots. Our club has choosen the "tax > advantage" option; which means lots creating long term > losses will be sold first, before lots creating long term > capital gains. > > My questions, will autosync data exchange pick up the > different order of lots sold? If not, is there going to be a > method to override the FIFO approach? > > Jack Ranby, Treasurer > Grants Partners Investment Club > > Laurie Frederiksen wrote: > > Dear Etana,The cost basis shown on the valuation report is the total you spent on the Cisco shares you still own divided by the total number of shares you still have.You bought one lot of 54 shares on 3/16/2001 for $1064.63. You bought a second lot of 47 shares on 1/19/2011 for $996.99. > > ($1064.63+$996.99)/(54+47)= $20.4121 which is the cost basis number shown on the Valuation Statement.In reality, your two lots have different basis. The basis of the first lot is $19.71 per share and the basis of the second lot is $21.21 per share. These are the numbers that will be used to calculate your actual gain/loss when you make sales in the future. > > I found the cost basis numbers by going to Accounting>Investments and clicking on Cisco. This brings up a list of all the Cisco transactions. You can select edit for any one of them to find out the number of shares purchased and the total spent (including commission). Divide the two to get the cost basis for that lot. > > -- Laurie FrederiksenInvest with your friends!www.bivio.comBecome our Facebook friend! www.facebook.com/bivio > > Follow us on twitter! www.twitter.com/bivio Etana,
<<
I thought the 30 shares we sold on 12/09/01 was the lot that we bought on
11/20/2000
>>
It was. You can see this if you go to Accounting|Investments and click on
CSCO. Then, edit the sale transaction for the 30 shares sold on 12/09/2001. On
the edit sheet that comes up, click on 'Lots'. There you will see that the 30
shares sold came out of the lot that was bought on 11/20/2000. Be sure to click
on Cancel to get out of this screen, because you do not want to change the
selection of the lots sold at this late date.
Laurie has shown you how to find the cost basis of the lots you still own
for any stock. Another method, which I use, is to pretend that I am going to
sell all the shares remaining of a particular security. Then when you reach the
screen with the 'Lots' on it, you can click on 'Lots', and see the dates and
cost basis for each lot you own. If you use this method, you should be very
careful to get off the screen without actually selling any lots.
Rip West
Saint Paul, MN John and Linda,
Linda said.........
<<
Historically, the burden of proof was left to the investor and the
brokerage firm did not report cost basis. Thus the investor was always
able to specify the accounting method used but generally requested documentation
during the sell order.
>> That's not quite true. The IRS insisted that you allocate the lots to be
sold on the FIFO basis, unless you gave written instructions to the broker to
the contrary.
John asked.......
<<
My questions, will autosync data exchange pick up the different order
of lots sold? If not, is there going to be a method to override the FIFO
approach?
>>
At this time, there is nothing in place to allow a customer to specify the
'standing instructions', automatically, in bivio. However, it has always been
possible, in bivio, to specify the particular lots to be selected in any sale of
a security. bivio uses the FIFO method as the suggested method, but, by
selecting 'lots' when entering the sale, the customer can select any lot to be
used. As always, it is up to the customer to make sure that the selection used
is in accordance with his/her instructions to the broker.
Rip West bivio.com
On Mon, Jan 24, 2011 at 1:01 AM, Linda Lee <lindalee0@bivio.com> wrote: I thought that the new tax law requires the brokerage to Dear Linda, The new tax law requires the broker to report the accounting method used to you but not to the IRS. They are required to use the method you sepecify and report cost basis and gain or loss to the IRS. Investors have always been able to choose a different accounting method but the broker must be informed on or before the sale. It is important that everyone understand that if they select an accounting method other than First In, First Out, that there will be a need to make manual adjustments in your bivio records to reflect the sales properly. -- Laurie Frederiksen Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio
Dear Jack, This will be an important topic this year. As we've mentioned, picking an accounting method other than First In First Out, will require you to make manual adjustments to your bivio records. The other thing to consider is that partnership income is passed through to the partners to be taxed. What might be a "Tax Advantage" to one person might not be to another. The wording of what it is called is a bit tempting and might be misleading so make sure everyone fully understands the impact on their personal situation before you make any changes. -- Laurie Frederiksen Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Laurie and Rip: Thank you for the clarification regarding how bivio will handle the transactions, and the need for manual adjustment. Jack Ranby, Treasurer Grants Partners Investment Club Laurie Frederiksen wrote: > Starting in 2011, it is possible to give the broker standing > instructions to use FIFO, LIFO, or "Tax Advantage" as the > order for sale of lots. Our club has choosen the "tax > advantage" option; which means lots creating long term > losses will be sold first, before lots creating long term > capital gains. > Dear Jack,This will be an important topic this year. As we've mentioned, picking an accounting method other than First In First Out, will require you to make manual adjustments to your bivio records. > The other thing to consider is that partnership income is passed through to the partners to be taxed. What might be a "Tax Advantage" to one person might not be to another. The wording of what it is called is a bit tempting and might be misleading so make sure everyone fully understands the impact on their personal situation before you make any changes. > -- Laurie FrederiksenInvest with your friends!www.bivio.comBecome our Facebook friend! www.facebook.com/bivio > Follow us on twitter! www.twitter.com/bivio |
|
||||||