Figuring pre 1983 AT&T tax basis

flk · #1 Mar 19, 2009, 01:28 PM

Re: ebaines Mar 28, 2008 reply
In 2004 I sold all AT&T stock acquired initially 5/31/60 and reinvested div. until sale. ( I also rec'd the Baby Bells in '84) Do I understand I could multiply cost basis - all my investments and dividends made to AT&T- by 0.949 to arrive at cost OR would I have had to do the calculations for all the splits, mergers, spinoffs, etc?
Are you saying multiplying by 0.949 should equal the same result as doing it "the long way".
(I sold Comcast in 2008 and figuring cost basis made me look back and ponder the problem!)

ebaines · Mar 19, 2009, 02:05 PM

You are referring to this thread, right?

http://www.askmehelpdesk.com/taxes/h...-a-199311.html

Multiplying your December 31, 1983 cost basis by 0.949 gives you a cost basis for your AT&T stock in 2008 that was acquired pre-divestiture. The problem is you need to know your pre-1984 cost basis - which means the original purchase price in 1960 plus all the reinvested dividends up to December 1983. You multiply that amount by .949 to find the cost basis for that stock today. For dividends you reinvested from 1/1/84 onward you would have to determine cost basis "the long way" for each lot of reinvested dividends. Hopefully you have good records of all dividends, and how each lot got split throughout all the subsequent corporate changes. Take a look at the web site that I referenced in the earlier thread - does it help?

flk · Mar 19, 2009, 04:41 PM

Quote:

Originally Posted by ebaines

You are referring to this thread, right?

http://www.askmehelpdesk.com/taxes/h...-a-199311.html

Multiplying your December 31, 1983 cost basis by 0.949 gives you a cost basis for your AT&T stock in 2008 that was acquired pre-divestiture. The problem is you need to know your pre-1984 cost basis - which means the original purchase price in 1960 plus all the reinvested dividends up to December 1983. You multiply that amount by .949 to find the cost basis for that stock today. For dividends you reinvested from 1/1/84 onward you would have to determine cost basis "the long way" for each lot of reinvested dividends. Hopefully you have good records of all dividends, and how each lot got split throughout all the subsequent corporate changes. Take a look at the web site that I referenced in the earlier thread - does it help?

Thank you ... I have all my records and will "return to the drawing board".

flk · Mar 21, 2009, 05:36 AM

Quote:

Originally Posted by flk

Thank you ... I have all my records and will "return to the drawing board".

Re: cost basis for AT&T taxes. I believe multiplying by 0.949 is done if figuring cost basis for AT&T Inc. It would not apply to AT&T Corp shares which were sold in 2004.
(See Cost Basis Guide for AT&T Corp.)