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Hey All

Wondering if any of you could give me some insight here. My grandfather bought Dell sometime before he died, which was September 24 1998. Dell at the time was trading for a split adjusted $33.03 a share. I also have a spreadsheet put together by my grandmother's brother-in-law that says the original basis on Dell was $20.25 a share.

About a year and a half ago, my grandmother was talked into putting a large sum of money with a Bank of America financial advisor. He has done a pretty crappy job but since I'm the only person in the family who knows anything about money no one else reallys knows it. About 6 months ago, my grandmother transferred her Dell shares over to her B of A account. On the 19th of November, the advisor sold all 2,000 of my grandmother's Dell shares courtesy of some covered calls he had written at about $37.50. I assumed he would not be so stupid to do this, but on December 3rd he repurchased 1,500 shares of Dell at $41.96.

My questions are two-fold. The first is am I correct that my grandmother will have to face her gains on Dell as ordinary income, rather than LTCGs? The second is I'm not sure if her basis is the value of the shares at the time my grandfather died or if they are his original basis on the shares. I'm not sure if their account was joint, but if it was that would be bad, correct?

Thanks so much for the time and help!

Joe
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