Cost Basis


T

Titan 4X4

How do you figure your cost basis of stock if it was purchased at an
employee discount, held over Two years, but then sold and converted to the
new company, I.E. Nextel to Sprint? A merger was the reason for the sale to
convert, not my directive.
In Turbo Tax they ask for a cost basis wow this is confusing?
 
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T

TObject

Titan 4X4 said:
How do you figure your cost basis of stock if it was purchased at an employee discount, held over Two years, but then sold and
converted to the new company, I.E. Nextel to Sprint? A merger was the reason for the sale to convert, not my directive.
What did you receive for your stock, money or new stock?
You report it on Schedule D if you received money; new stock
you report when you dispose of it.

Your cost basis is usually whatever you paid for the stock,
plus broker commission, plus any other fees associated with
acquiring and selling the stock.

If you received both money and stock (happens, for example,
when you are reimbursed for partial shares), then you need to
report the money part now, and allocate the cost basis
proportionately.
 

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