Calculating Cost Basis for AT&T, Verizon, and Vodafone

Discussion in 'Individuals' started by almostjune, Mar 29, 2011.

  1. almostjune

    almostjune

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    I have a client who inherited shares on AT&T from her father in 1971. Through the antitrust case and the subsequent acquisitions and mergers she acquired stock in the current AT&T, Verizon Communications, and Vodafone.

    Is the cost basis for all of these the the cost of the original AT&T shares at the time they were inherited?
     
    almostjune, Mar 29, 2011
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  2. almostjune

    wordsmith

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    As I understand it, to calculate the cost basis you start with the market value at the time your client acquired the original AT&T shares; then go through the steps to determine the cost basis of the seven operating companies and their subsequent splits, mergers and spin off companies. To find the information needed to use in calculating the current cost basis of the individual shares your client now owns go to the websites of each of the individual stocks under investor relations or shareholder services --cost basis.
     
    wordsmith, Mar 30, 2011
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  3. almostjune

    sjaljalkfls

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    If you trade through a broker or your bank or whoever you purchase your stocks and funds through might keep accurate records of cost bases for your holdings, thats the easiest way, try asking them.
     
    sjaljalkfls, Mar 31, 2011
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