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Subject Author Date
Cost basis of warrants from class action 704set 06-30-2006
Posted by 704set on June 30, 2006, 6:27 pm
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 I received Raytheon warrants from a class action settlement.
The Raytheon web says to consult your tax advisor regarding
tax ramifications from the sale.

What would be the cost basis?

704set

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<< and does NOT constitute legal OR professional advice. >>
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Posted by Paul Thomas on July 1, 2006, 4:36 pm
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> I received Raytheon warrants from a class action settlement.
> The Raytheon web says to consult your tax advisor regarding
> tax ramifications from the sale.
>
> What would be the cost basis?

I take it that you don't have your own tax advisor.

The safest thing to do is to have a $0 tax basis. But, one
would have to have the ability to look into the underlying
facts and circumstances that gave rise to you being a part
of the class to determine what, if any, basis you have.

No one here is going to just spit out a number greater than
$0 because no one here has the information necessary to give
you that answer.

--
Paul A. Thomas, CPA
Athens, Georgia

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by 704set on July 2, 2006, 10:44 pm
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>> I received Raytheon warrants from a class action settlement.
>> The Raytheon web says to consult your tax advisor regarding
>> tax ramifications from the sale.
>>
>> What would be the cost basis?

> I take it that you don't have your own tax advisor.
>
> The safest thing to do is to have a $0 tax basis. But, one
> would have to have the ability to look into the underlying
> facts and circumstances that gave rise to you being a part
> of the class to determine what, if any, basis you have.
>
> No one here is going to just spit out a number greater than
> $0 because no one here has the information necessary to give
> you that answer.

And what information would you require?

704set

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Paul Thomas, CPA on July 3, 2006, 9:57 am
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>>> I received Raytheon warrants from a class action settlement.
>>> The Raytheon web says to consult your tax advisor regarding
>>> tax ramifications from the sale.
>>>
>>> What would be the cost basis?

>> I take it that you don't have your own tax advisor.
>>
>> The safest thing to do is to have a $0 tax basis. But, one
>> would have to have the ability to look into the underlying
>> facts and circumstances that gave rise to you being a part
>> of the class to determine what, if any, basis you have.
>>
>> No one here is going to just spit out a number greater than
>> $0 because no one here has the information necessary to give
>> you that answer.
>
> And what information would you require?

For starters, what caused you to be part of the Raytheon suit
in the first place?

Your best bet would be to seek the guidance and counsel of your
local tax professional who can take a look at all that you have
going on and determine what basis, if any, yo have.

--
Paul Thomas, CPA
paulthomascpapc@bellsouth.net

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by @ on July 3, 2006, 10:09 am
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>>> I received Raytheon warrants from a class action settlement.
>>> The Raytheon web says to consult your tax advisor regarding
>>> tax ramifications from the sale.
>>>
>>> What would be the cost basis?

>> I take it that you don't have your own tax advisor.
>>
>> The safest thing to do is to have a $0 tax basis. But, one
>> would have to have the ability to look into the underlying
>> facts and circumstances that gave rise to you being a part
>> of the class to determine what, if any, basis you have.
>>
>> No one here is going to just spit out a number greater than
>> $0 because no one here has the information necessary to give
>> you that answer.

> And what information would you require?

First, I'd need to know what was your loss, how the class action
compensated you for that loss (warrants, cash, and whatelse), and
what was the FMV of each as of the date of compensation.

Second: You have a mildly complex tax situation. To advise you,
someone has to comprehend the decision of the class action suit.
Which means you explain it here and pay someone to do it for you.

Finally: Whatever you read in this newsgroup is properly
classified as non-binding opinions of tax professionals or as
I like to say "Tell the IRS Auditor you read it on the Internet."

Dick

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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