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Financial Planning / Tax Strategies


Subject:  Re: Basis question Date:  8/9/2012  6:15 PM
Author:  fleg9bo Number:  116524 of 123001

Then there's the matter of the cash-in-lieu payments.

Yeah - about those. You did that wrong back in 2006. You should have first done the basis allocation from above. That would give you your basis in the 108-plus-a-fraction shares in each company. The cash in lieu is a sale of the fractional share. So you'd then need to allocate your total cost in the newly spun off companies to that fraction of a share that was sold. Of course, that leave you with a very slightly smaller basis in the whole shares.

Gotcha. What I actually did was put the cash-in-lieux