Selling Dividend Reinvest Plan Stock

[Seanscott]

What is the name of your state? Indiana

6 years ago I enrolled in a dividend reinvestment plan (DRIP). I invested $1500, and every three months the dividends are used to purchase additional fractional shares which are then added to my account.

My great investment is now worth about $1536 and I know I can do better with that money than to let it sit in the DRIP.

How do I list the sale on my tax forms? I have paid taxes on the dividends every year. Do I have to list each purchase price for each fractional share I received? Can I just make one entry on my tax form such as purchased 50 shares at $30 each and sold at various prices totally $1536? Obviously the only profit I've made is from the dividends, the price of the stock has dropped a lot in the past 6 years. Can I claim a loss?

Thanks for your time.

[abezon]

You sell the shares for whatever you can get. For a cost basis, you use $1500 PLUS all the dividend income you've declared from those shares on your tax return in past years. This will probably result in a loss.