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jeanmac66: <<<I am looking to take a loss to offset gains. I purchased 100 shares of Chrysler for $27 in 1996 for a mv [JAFO - basis] of $2725. On 11/16/98 due to the merger with Daimler, my 100 shares changed to 62 at $91.62 for a value then of $5680. Last closing price for DCX was 73 1/8 for a mv of $4533.75.

Do I have a loss? or if I must use the 1996 buy of 100 Chryler at $27 for a value of $2725, then I would have a gain and not wish to sell."

I am no expert, but here goes anyway.

I do not recall the exact details of the Chrysler?Daimler merger, but many (most?) of these transactions are structured to be tax-free exchanges to the shareholders.

If that that was the case, then your basis in the Chrysler stock became your basis in the Daimler stock and you still have a paper gain, which you would realize if you sold now.

What kind of information did you receive when the merger occurred?

If the merger was a taxable event, then you would have paid taxes on the gain for the year of the merger and should have established a new basis in the Daimler stock. In this scenario, you would currently have a paper loss that you could realize by selling.

I was not a Chrysler shareholder, so I do not recall the details. If you do not obtain an anser on this board, you may wish to ask on the Chrylser/Daimler stock board (I am assuming that one exists on TMF).

Hope this helps.

Regards, JAFO
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