Taxation of Corporate and Government Securities Flashcards
1
Q
Cost basis
A
Total purchase price (including commission)
2
Q
Sale proceeds
A
Net proceeds (sale price - commission)
3
Q
What does form 1099-B tell the IRS?
A
report for when stock is sold; lists cost basis, sale proceeds, and whether position was short or long term
4
Q
How does accrued interest affect bond cost basis and sale proceeds?
A
It doesn’t - instead applies to other investment income
5
Q
Are stock dividends and stock splits taxable the year they occur?
A
No, cost basis is changed so only impacts upon sale
