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Financial Planning / Tax Strategies
|Subject: Re: The Cost Basis Crisis||Date: 7/1/2006 1:21 AM|
|Author: lethean||Number: 87633 of 124467|
Must say that I have a miserable stock holding as regards keeping up with cost basis. Liberty Media. One thing after another for several years it seems. I finally gave up trying to keep it straight and decided that when the time came to sell, I'd sell everything related to Liberty Media at the same time.
I do know my total basis, just not the various allocations at this point.
I think that there are about 5 separate stocks resulting from the original holding - spinoffs. And rights offerings on most of them. Ugh.
Is there a way to report selling them all without allocating the cost basis?
For instance, list the 5 stocks in order. Then assign actual purchase price to "new" Liberty and $0 basis to the other 4 stocks. "Purchase" dates of all would be same, correct??? Result might be a loss on Liberty and certainly a gain on the other 4 with #0 basis.
In total, the cost basis and gain/or loss would be correct for the 5 stocks taken together. (Would sell them all on same day.)
Would that work in eyes on IRS? Would they see some logic in doing it the simple way and let it be??? Leave me alone?
Thanks ... Lethean
ps If it makes any difference, I anticipate that the gross sale of all 5 stocks might be 1% of yearly income. So, it's not a huge chunk of money even on a gross basis. 1000 shares of L became 40 shares of this, 200 shares of that, 50 shares of something else, etc. And then follow on rights offerings. I DO know where to go on the web to sort out the basis. But it'd be a real job and a challenge to do.
I've been good about keeping basis straight otherwise. No problem. I just finally gave up on Liberty. And figured I'd sell everything at once. Will that work? Not correct, but "OK"?
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