1. What Is Cost Basis?

Cost basis represents the original value of an asset for tax purposes, usually the purchase price plus any additional costs or adjustments. For Comcast stock, this includes the purchase price plus any commissions, fees, or other adjustments.

2. How Does The Calculator Work?

The calculator uses the simple formula:

Where:

• \( Purchase \) — Original purchase price of Comcast stock
• \( Adjustments \) — Any additional costs, fees, or adjustments

Explanation: The calculator sums your original purchase amount with any additional costs to determine your total cost basis for tax reporting purposes.

3. Importance Of Cost Basis Calculation

Details: Accurate cost basis calculation is essential for determining capital gains or losses when selling investments. Proper calculation ensures correct tax reporting and can significantly impact your tax liability.

4. Using The Calculator

Tips: Enter the original purchase price of your Comcast stock and any additional costs or adjustments. Include commissions, fees, or other expenses related to the purchase. All values should be in US dollars.

5. Frequently Asked Questions (FAQ)

Q1: What costs should be included in adjustments?
A: Include brokerage commissions, transfer fees, and any other direct costs associated with purchasing the Comcast stock.

Q2: How does cost basis affect taxes?
A: Cost basis is subtracted from the sale price to determine capital gains or losses, which are taxable events.

Q3: What if I purchased Comcast stock at different times?
A: You may need to calculate separate cost bases for each purchase lot using specific identification, FIFO, or other accounting methods.

Q4: Are dividend reinvestments included in cost basis?
A: Yes, dividends reinvested to purchase additional shares increase your cost basis for those additional shares.

Q5: How should stock splits be handled?
A: Stock splits adjust the per-share cost basis but not the total cost basis. You would need to adjust your purchase price accordingly.