On Mar 7, 10:34 am, jiang <jiangha...[at]yahoo.com> wrote:

- quote -

You're gonna have to figure out the cost basis of your remaining
Verizon and FairPoint shares anyway, in case you decide to sell them.
So might as well do the research to figure this out (ie. contact the
financial institution and ask them, etc). Then as a bonus you'd know
the cost basis of the fractional share of FairPoint.

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On Mar 7, 10:34�am, jiang <jiangha...[at]yahoo.com> wrote:
- quote -

For such a small amount, figuring the cost basis is not worth the time
and effort. Most commonly, a cost basis of ZERO can be used, making
the entire $7 taxable. At most, that is 15% of $7, or $1.

Spend your energies and time in reconstructing the cost basis of the
whole shares you retain, as you will need that when and if you sell.
Or leave them to someone in your Will, and they then get the FMV as
cost on your date of death.

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"jiang" <jianghanyu[at]yahoo.com> wrote .
- quote -






Yes, you have to report it. Schedule D, and right or wrong many people
would not compute the cost basis on this small of a fractional share,
leaving the cost basis to the remaining full shares.

At worst it's $1 of tax.





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Paul Thomas, CPA
Watkinsville, Georgia

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My husband hold a small amount of odd shares of Verizon, which was
spin-off FairPoint Communications in 2008. He received fractional
shares (less than one share) of FairPoint Communications and its value
is about $7. He does not have record of the cost of Verizon because
it was converted from GTE. He purchased various GTE shares from his
pay checks when he worked for the company 25 years ago. Again, he has
not kept any record of GTE.

We received form 1099B of 2008. It is called Proceeds From Broker and
Barter Exchange Transactions. The amount in box 2 is about $7 and a
check box indicated gross proceeds. The description in box 7 is
FairPoint Communications, Inc. Proceeds from Spin-off and Merger.

My questions are as following.
1. Practically, do we have to report the $7 into the federal income
tax return? I heard from somewhere that it is not necessary to
report if the value is less than $10. I am not sure if it o.k. or
not. I just feel the headache paper work for these a few dollars.
2. If we have to report it on the schedule D, how should we figure
out the cost/other basis (column e) since my husband has no record at
all?

Can anyone out there with the knowledge and experience give me some
suggestion how to handle our problem. I really appreciate any ideas.

Thanks,

Jiang

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<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >