Will Apple's Stock Split Impact My Tax Returns?
If you woke up in 2020 with more Apple (NASDAQ: AAPL) shares than you originally purchased in your account, don't get too excited or start panicking. You're just the recipient of Apple's 4-for-1 stock split and were given 3 additional shares for every one share of Apple stock you owned. The total value of your stocks doesn't change and you don't have to stay up all night learning the latest tax laws. A stock split does not impact your taxable income for U.S. federal income tax purposes -- unless you decide to sell your shares.
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When a stock split occurs for popular company stocks, new investors may be enticed to buy company shares in hopes that they will hit the stock jackpot. But a stock split doesn't increase your earnings; It gives you more shares in your account while keeping the total value of the stocks in your account the same. The shares are just listed at a cheaper price, making the company stock more affordable to a broader range of investors.
Source Fool.com
