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Author: lcook7 Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121426  
Subject: Buyout of Champion international Date: 4/14/2001 6:24 PM
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I owned shares in Champion International at the time it was purchased by International Paper last May. The sale terms were $50 cash per each share of Champion plus $25 worth of IP stock at market on date of sale. The Champion shares were highly appreciated and had been aquired as settlement of my ESOP plan when Champion bought ST Regis Paper where I worked in 1983. My CPA figured my taxes based upon a Like-Kind exchange but listed no value as FMV on line 18 for surrendered property. This resulted in a large capitol gain. When I called the IRS help line I was told with unconvincing clarity this does not qualify as like kind exchange and should be reported on the regular capitol gains form. My question to them was -- Does all of the cost basis of the surrendered shares transfer to the new Intrnational Paper shares? I didn't get a very convincing answere. Can anyone help me clear this up?
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