The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Stock Basis Question||Date: 1/8/2007 1:21 AM|
|Author: dsemmler||Number: 90690 of 119696|
Just wanted to stop in here to get a clarification on my thinking regarding a recent stock transaction.
Quite a few years ago, I had been holding stock in ZDNet (ZDZ) and that was acquired by CNet in October of 2000 (10/17). For each share of ZDZ, I received 0.5932 shares of CNet stock.
This year I sold the CNet stock. If I am correct, I believe I would report the basis as the original purchase of ZDZ. As an example, consider the following:
Bought 50 ZDZ @ $10.00 = $500.00
Merger 50 ZDZ become 29 CNET
Sold 29 CNET @ $5.00 = $145.00
Transaction results in loss of $355.00, is that correct? Or do I use the price from 10/17/2000 when my ZDZ became CNET stock?
|Copyright 1996-2013 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|