1. What is Basis per Share?

Basis per Share represents the original cost of a single share of stock or security for tax purposes. It's calculated by dividing the total cost basis by the number of shares owned.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Total Basis — The total amount paid for the investment (USD)
• Shares — The number of shares purchased (unitless)

Explanation: This calculation helps investors determine their cost basis for tax reporting when selling shares.

3. Importance of Basis per Share

Details: Knowing your cost basis per share is essential for calculating capital gains or losses when you sell shares. It directly affects your tax liability.

4. Using the Calculator

Tips: Enter the total amount you paid for the investment and the number of shares purchased. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why is basis per share important?
A: It determines your capital gains when selling shares, which affects your tax liability.

Q2: Does basis per share change over time?
A: The original basis remains the same unless adjusted for stock splits, dividends, or other corporate actions.

Q3: How do stock splits affect basis per share?
A: In a stock split, your basis per share adjusts proportionally (e.g., in a 2-for-1 split, basis per share is halved).

Q4: What if I bought shares at different prices?
A: You'll need to calculate separate basis for each lot of shares purchased at different prices.

Q5: Are there different methods to calculate basis?
A: Yes, including FIFO (first-in-first-out), specific identification, and average cost methods for multiple purchases.