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Subject:  Cost basis from a spin off Date:  2/16/2013  9:34 PM
Author:  DN549 Number:  117802 of 127613

Hello all,

My 1099-B reports a sale of stock (due to a merger). It lists the proceeds but not the cost basis. The stocks were originated from a Merck spin-off in 2003 (Express Scripts Holdings).

Is my cost basis the value of the stock the day I received it?

Also, as a result of the merger last year, I received cash in lieu. Is there a cost basis for this, or is it just zero?

Last annoying tax question (sorry, and thanks if you're still reading): Would be the date of acquisition be the day I bought the original stock (pre-spin-off and subsequent merger)? Or is it the day I got the cash in lieu?

Thanks again for any input (even if it's just pointing me to reading material. By the way, I've read IRS pubs 550 and 551. No help.

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