cost basis


S

stonecreek

I've read much about cost basis in this group and on the web
and it's pretty confusing to me for my situation. Years ago
AT&T gave employees 1 share of stock for every $10K (I
think) of salary they made. After a few years, I asked for
a distribution and was given 100 shares of stock which I
still own. Since then after the spin-off of some of its
entities such as Comcast, we were given X amount of Comcast
stock for each share of AT&T that we owned. If I sold the
Comcast stock for X amount, how do I figure the cost basis
from the original AT&T stock. I am being told that the fact
that I didn't buy the AT&T stock, it was just given to me,
that I have to declare all of the proceeds from the sale of
the Comcast stock. Not sure if this is right. I've also
been told that I could pretty much declare anything because
the IRS wouldn't be able to figure it out either. Just want
to do what is right.

thanks
 
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H

Herb Smith

stonecreek said:
I've read much about cost basis in this group and on the web
and it's pretty confusing to me for my situation. Years ago
AT&T gave employees 1 share of stock for every $10K (I
think) of salary they made. After a few years, I asked for
a distribution and was given 100 shares of stock which I
still own. Since then after the spin-off of some of its
entities such as Comcast, we were given X amount of Comcast
stock for each share of AT&T that we owned. If I sold the
Comcast stock for X amount, how do I figure the cost basis
from the original AT&T stock. I am being told that the fact
that I didn't buy the AT&T stock, it was just given to me,
that I have to declare all of the proceeds from the sale of
the Comcast stock. Not sure if this is right. I've also
been told that I could pretty much declare anything because
the IRS wouldn't be able to figure it out either. Just want
to do what is right.
At the time you were "given" this stock, was an additional
amount added to your W-2 for the value of the shares? If so,
that is your basis now - no matter what has occurred since.
If not, then your basis is -0- and you are taxed on the Net
Proceeds of sale.
 
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D

D. Stussy

stonecreek said:
I've read much about cost basis in this group and on the web
and it's pretty confusing to me for my situation. Years ago
AT&T gave employees 1 share of stock for every $10K (I
think) of salary they made. After a few years, I asked for
a distribution and was given 100 shares of stock which I
still own. Since then after the spin-off of some of its
entities such as Comcast, we were given X amount of Comcast
stock for each share of AT&T that we owned. If I sold the
Comcast stock for X amount, how do I figure the cost basis
from the original AT&T stock. I am being told that the fact
that I didn't buy the AT&T stock, it was just given to me,
that I have to declare all of the proceeds from the sale of
the Comcast stock. Not sure if this is right. I've also
been told that I could pretty much declare anything because
the IRS wouldn't be able to figure it out either. Just want
to do what is right.
Another response has already addressed whether or not you
had a cost basis in the original shares.

As for what happened to them after all the various splits
and such, there may still be an "AT&T Share calculator"
floating around on the Internet. That was a problem for
more than just you....
 

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