tax Q re stock sold after reverse split?

[Psurfer]

Will the tax sw programs (I'll be using TaxAct online) deal with the following?
100 shares of stock bought years ago had a reverse split, turning into 20 shares. All 20 were then sold in '09 (for a loss... don't ask).

I'm expecting frustration w/TaxAct (as usual). Or will the program allow me to specify that the 20 shares sold represented all 100 originally bought?

[cbelt3]

.. Just treat it as a single unit sale. $10,000 of basis, $1,000 of sale, loss of $9,000. As long as you keep your records...


(Disclaimer: I am not a tax professional, nor do I play one on TV. YMMV, you get what you pay for free advice, consult with your tax professional or doctor or minister, etc..)

[Psurfer]

Thanks, I just assumed the worst, that I'd need to input # of shares, etc into TaxAct.
Every year TaxAct becomes maddening at some point. I dread using it more than the money owed at the end. I've been putting off tackling this chore for as long as possible...

-And this year it also seems a little odd that they did not email me their usual slew of reminder links.

[Wailer]

Most financial software (quicken) and most tax software can usually deal with stock splits and reverse stock splits. Stocks splits are not taxable events.

Most will just ask the basis of when you bought them and then what you sold them for. The difference, including commissions, is your loss and can be used to offset gains of the same type (long or short) and any excess can be used to offset up to $3k ordinary income each year.

[guitarist]

I watched a reverse split during the winter Olympics, it was amazing.