Message Font: Serif | Sans-Serif
No. of Recommendations: 1
If you weren't taxed on it at the time, you old cost basis becomes your new cost basis. The value of the shares at the time are only relavent if all or part of the transaction was immediately taxable.

Bought 50 ZDZ @ $10.00 = $500.00
Merger 50 ZDZ become 29 CNET
Cash paid for partial share
Sold 29 CNET @ $5.00 = $145.00

$500/29.66 = $16.85
$16.85 * 29 = $488.65

$488.65-$145 = $343.65 loss

The actual amount you received for the partial share really doesn't matter. Just reduce your cost basis by the proportional amount of the partial share.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.