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smith107: "I sold my GM stock in 2005. The stock had been purchased by my parents on 10/25/1975.

In 1989, GM split 2-for-1.

According to GM's price history, the closing price on the day of purchase (10/25/1975) was $21.73. The split adjustment factor is 2.53151:1 and the "actual price" is $55.00."

smith107: "My mother is still living and the stock is part of a living trust. I have power of attorney over the trust.

Therefore, I'm using the 1975 date as a starting point. I'm familiar with the Hughes and Delphi issuses. In fact, I sold Delphi as well. I subtracted the number of Delphi and Hughes shares from the number of GM shares I held prior to the spinoffs, to come up with the number of GM shares to use as a cost basis."

Color me dumb, but what does the closing price on the purchase date by your parents have to do with anything???

You parents basis was what they paid, plus commission, regardless of what price the stock closed at the day they purchased.

You do not mention your father, so I cannot tell whether he is still living and whether he owned the stock at one time and whether there may have been a step-up in basis (either all or 1/2, depending upon title and state in which your parents lived).

You explanation of your accounting for the Delphi & Hughes spin-offs also does not sound correct to me.

I am biting my tongue about your tax advisor.

Good luck. Regards, JAFO
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