cost basis

#1 02-03-2004, 06:01 AM

stonecreek wrote:

- quote -

> 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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02-01-2004, 05:05 AM

"stonecreek" <m4acpd[at]ets.com> wrote:

- quote -

> 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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#-1 01-28-2004, 05:26 PM

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

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

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