Short sale stock split tax reporting

Discussion in 'Taxes and Accounting' started by dividend, Mar 23, 2011.

  1. If I sold short 10 XYZ, then the stock split 10:1, then I bought 100 XYZ to close the trade: On the IRS 1040 schedule D, am I correct to report that I traded 100 shares of XYZ?
     
  2. Yes. Report the share number on the date you closed out your position. That's when you "realized" your gain/loss.
     
  3. morgen

    morgen

    A Stock Split is the increase in number of outstanding shares of a company without any change in the shareholder's equity or market value. There are no tax consequences when a stock split occurs, but you should be aware of pre-split and post-split prices for tax calculations of determining gains/losses.