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Financial Planning / Tax Strategies
|Subject: Re: Cost basis from a spin off||Date: 2/23/2013 5:32 AM|
|Author: TMFPMarti||Number: 117848 of 121563|
We used to own Pixar, which eventually was bought out by Disney. Shortly after Pixar shares were converted to Disney, Disney spun off a small company called Citadel Broadcasting, which started out being a penny stock (maybe 31 cents) and was only worth in total about $50 in our account, but then went to zero in short order.
I sold off our Disney shares this year and had my broker "sell" the worthless stock too, on the same day.
I would just allocate all the basis to Disney.
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