ST Alpha - "Hrrmm --- stock question --- if a stock I bought has split into 2 different companies, how does that work taxwise?" (Reading a Post)

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Hrrmm --- stock question --- if a stock I bought has split into 2 different companies, how does that work taxwise?

Posted by Will Hunting (aka Joemetz) Nov 4 '13, 09:38

I bought PENN and last friday it split into PENN and GLPI -- the PENN went from $59 to $13.50 and the GLPI was priced at the $45.50....

I'm reading a $45.50 per share loss on the PENN? Is that reality for tax purposes?

Responses:

[deleted] 3
- I would assume it would be like Spammy said, the ratio would become my new baseline - Will Hunting Nov 4, 09:46 2
  - Yeah, don't trust them. - spamlet Nov 4, 09:47 1
    - exactly -- nm - decline Nov 4, 09:48
No, your basis would be split based on the percentage of the share price post-split for each stock. -- nm - spamlet Nov 4, 09:44 2
- this was going to be my guess. -- nm - znufrii Nov 4, 09:45 1
  - Really, you could use any reasonable method, but this would be the easiest and most defendable. -- nm - spamlet Nov 4, 09:46
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Hrrmm --- stock question --- if a stock I bought has split into 2 different companies, how does that work taxwise?

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