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closer to selling that stock

September 18th, 2009 at 10:09 pm

Saving log - $2 tip box
Spending log - $1.50 ketchup
Found money - $0

My current money project is to sell a bit of bank stock to harvest a long-term capital loss that I can use to lower my taxes this upcoming season. Since it is a from a dividend reinvestment program, its not as simple as calling a broker and yelling "SELL!" Wink. I have:

1. warned my tax guy.
2. got into my shareholder account (connect w/ the transfer agent).
3. figured out the shares that I want to sell (FIFO- the ones first in to get a long term capital loss) and get my spreadsheet of shares in order.
4. wait until Sept dividend has been bought and in my account.
5. went to Yahoo Finance and got the split, spinoff, and share adjusted price of the stock.
6. multiply the adjusted price by number of shares to get cost basis
7. multiply the current price by number of shares to get estimated value.
8. subtract number 6 from number 7...I get around a $2400 loss for the 130 shares I want to sell.
9. made a phone appointment with the tax guy to get his opinion and see what he needs. (Tuesday)
10. send my spreadsheet to the tax guy.

What I have yet to do:
11. Contact the transfer agent to get the final protocol for how to sell. So far, I know I have use written means.
12. get whatever the tax guy needs.
13. Sell some stock.

The cost basis of the bank stock in question is in the low $30s, while the current price has hovered in the 7-8$ range. All my other Drp stock holdings are very, very much up.

4 Responses to “closer to selling that stock”

  1. homebody Says:

    I need to take the plunge into DRIPS for my granddaughter (well yeah me too), but I told my kids I was not going to spend gobs of money on crap and would instead do a savings account for her or something, but I have yet to set it up. I have investigated and read the how to's I just need to do it!

  2. kimiko Says:

    Having money is a lot of work.

  3. shiela Says:

    Wow...that's a lot of steps you got to do just to sell some shares. Good luck. I've been looking at selling some my shares too. Hopefully I'll get there next week.

  4. midlight21 Says:

    Not too bad if you've kept all your statements!! I do, so selling a DRIP isn't too horrible. Luckily I've had my share of success with them and haven't sold but once!

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