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Posted by Benjamin Yazersky CPA on January 21, 2007, 4:18 pm
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> When my son was born, my in-laws gave my son $5000 worth of
> AT&T stock. Over the years there have been many spinoffs,
> etc. In 2005, I sold some of the stock which was a spinoff,
> Comcast, $5000 worth. Since it was a spinoff, I have
> essentially all profit and no cost.
>
> I intend to report this income on my son's tax return, not
> my tax return. Is it a straight deduction if the money is
> being used for college tuition, or are there some things I
> need to be careful of.
When there is a spinoff, you have to allocate the basis
between the 2 companies. So, you do have basis in the
spinoff stock sold. The co website may have info on how much
to allocate to each spinoff.
___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----
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