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Posted by Caryl on December 14, 2006, 3:01 pm
Please log in for more thread options Eric,
Thank you.
Caryl
Eric Bloch wrote:
> Verizon should have a return of capital transaction entered on the date of
> spin off, keeping the cash in the same Q account.
>
> Then Idearc has a buy transaction for all of your new shares using the cash
> from the return of capital.
>
> If you received fractional shares then enter an Idearc sale for the fraction
> with money you received.
>
> The only problem Q will have is that a Cap Gain report will show the sale as
> short term to the spin off date while IRS considers it a long term sale to
> the purchase of the original Verizon shares.
>
> Eric
>
>
> > The website for Verizon has a formula for "Calculating the Tax Basis
> > for Verizon Communications Inc. Common Stock and Idearc Inc. Common
> > Stock Following the Spin-off." Using the formula I was able to
> > calculate the tax basis cost for both stocks. I have no problem with
> > Idearc, as I just changed the price paid (I originally had the price
> > paid as 0).
> >
> > However, I am not sure what to do with the new price paid for Verizon.
> > I have had Verizon for about nine years, through a split and a name
> > change. Should I go back to the original purchase screen and change the
> > price paid there to the new calculated price? Or is there someplace
> > else where the new price paid should be entered?
> >
> > Thank you for your help.
> >
> > Caryl
> >
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