In article <Sbddj.19268$L27.12606[at]bignews9.bellsouth.net> ,
"Paul Thomas, CPA" <paulthomascpapc[at]bellsouth.net> wrote:

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That's what I thought, Paul. Thanks for confirming it.

--
-Ernie-

--
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"Ernie Klein" <ecklein[at]pacbell.net> wrote
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It doesn't change the holding period. Mergers - as this is most likely -
have the original purchase date carry forward. The same rules apply for
spin-offs.





- quote -


The IRS does not get your purchase date information, so enter the date you
bought the original shares.





- quote -

Yup.




- quote -


The stock you sold is an extension of the stock you bought back in.....2006.







- quote -





The same type of rules apply,




--
Paul A. Thomas, CPA
Athens, Georgia

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On 2/6/07 Lucent (LU) merged with Alcatel to become Alcatel-Lucent
(ALU). I received new ALU stock in exchange for my LU stock that came
from the Lucent spinoff (10/14/06). I sold the ALU stock on 12/11/07.

The "acquired" date for the ALU stock and the sold date make it seem
like it is short term, but since I didn't actually purchase any new
stock, it seems to me that a company merger shouldn't change my long
term stock into short term.

If I am correct that this is really long term, then how do I show that
on Sched D when the dates indicate short term? Do I use the acquired
date of the Lucent stock even though the stock that I sold didn't even
exist until 2/6/07 ?


BTW I have the same problem with Agere (AGR) merging with LSI Logic Corp
(LSI) on 4/2/07. Other long time holders of AT&T stock who sold off the
small oddball spinoffs in 2007 may have the same issues.

--
-Ernie-

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >