• Revenue Cycle Management
  • COVID-19
  • Reimbursement
  • Diabetes Awareness Month
  • Risk Management
  • Patient Retention
  • Staffing
  • Medical Economics® 100th Anniversary
  • Coding and documentation
  • Business of Endocrinology
  • Telehealth
  • Physicians Financial News
  • Cybersecurity
  • Cardiovascular Clinical Consult
  • Locum Tenens, brought to you by LocumLife®
  • Weight Management
  • Business of Women's Health
  • Practice Efficiency
  • Finance and Wealth
  • EHRs
  • Remote Patient Monitoring
  • Sponsored Webinars
  • Medical Technology
  • Billing and collections
  • Acute Pain Management
  • Exclusive Content
  • Value-based Care
  • Business of Pediatrics
  • Concierge Medicine 2.0 by Castle Connolly Private Health Partners
  • Practice Growth
  • Concierge Medicine
  • Business of Cardiology
  • Implementing the Topcon Ocular Telehealth Platform
  • Malpractice
  • Influenza
  • Sexual Health
  • Chronic Conditions
  • Technology
  • Legal and Policy
  • Money
  • Opinion
  • Vaccines
  • Practice Management
  • Patient Relations
  • Careers

You are responsible for tracking pre-2011 stock purchases


Discover nuances of purchasing stock pre-2011.

Q: I understand that starting January 1, brokerage houses were required to track what I paid for stock and provide this information to me upon any sale. What happens if I purchased stock before 2011?

A: For purchases made before January 1, each taxpayer is responsible for tracking his or her adjusted cost basis for each individual stock. When the stock is sold, you subtract the adjusted cost basis from the sale proceeds to determine whether a gain or loss occurred.

Although this process may seem straightforward, it can get complicated when you consider reinvested dividends, stock splits, reverse splits, shares bought and sold at different times, etc. For example, if you purchased some shares of a stock in 2007 and more shares in 2009, and sold a portion of your holdings in 2011, which shares of the stock have you sold? What happens if you obtained the stock through a gift or inheritance?

Answer provided by Medical Economics editorial consultant David J. Schiller, Schiller Law Associates, Norristown, Pennsylvania.Send your money management questions to medec@advanstar.com

Related Videos