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Stocks H / REALOGY CORP

URL:  http://boards.fool.com/ryesgramdi-asks-i-bought-cd-at-2050-a-share-i-25384696.aspx

Subject:  Re: Cost basis question Date:  4/11/2007  8:15 PM
Author:  intercst Number:  24 of 27

ryesgramdi asks,

I bought CD at 20.50 a share. I recieved 1 for 4 of CD in H. I owned 200 shares of CD long term so I recieved 50 shares of H. I multiply 50 times 20.50 and get 1025. as my cost basis plus .25 of 7 cost of trade. When I went to the website recommended here, it was to me very complicated. Is there anything wrong with the way I am figuring this out for my taxes? I received 1500 today in my scottrade account so I guess I made a long term capital gain of 450.


Here's the relevant explanation from Cendant's web site.

http://64.233.167.104/search?q=cache:YLMBCvDV11AJ:www.cendant.com/documents/TaxInfoforSHsFINAL.pdf+cendant+cost+basis&hl=en&ct=clnk&cd=2&gl=us

Based on the closing price at which Cendant common stock, Realogy common stock and Wyndham Worldwidecommon stock traded on August 1, 2006, $2.44, $26.10 and $31.85, respectively, as reported for the New York StockExchange transactions, 16% of your pre-distribution tax basis should be allocated to your shares of Cendant commonstock; 42.5% should be allocated to your shares of Realogy common stock (including any fractional share interest); and41.5% should be allocated to your shares of Wyndham Worldwide common stock (including any fractional shareinterest)



You have $20.50 x 200 shares of the old Cendant (CD) with a cost basis of $4,100.

Realogy (H) is 42.5% of the $4,100 = $1,742.50 or $34.80 for each of your 50 shares

Wyndham (WYN) is 41.5% of the $4,100 = $1,701.50 $42.54 for each of the 40 shares.

Cendant (now named Avis/Budget with a ticker of CAR) is 16% of the $4,100 = $656 or $32.80 for each of the 20 shares of CAR.

Note that CAR had a 10 for 1 reverse split on 09/06/2006. That why you no longer have 200 shares of CAR (formerly CD).

intercst
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