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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.

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 a