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Beginner Investing/figuring Basis for spinn offs

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Expert: Gina Boykin - 2/13/2008


Question
I bought stock in a company in 1996.  In 2004 it spun off a subsidiary and I recieved stock in the spin off while retaining some of teh stock in the parent cpompany. I sold both stocks in 2007.  How do I figure the basis for the stock recieved in the spinn off?

Answer
The basis for the spin off should be the price on the date you received the stock, while the basis for the parent company stock would be the price of the stock when you originally purchased it.  If you purchased the stock through a broker, he or she should have this information in your records and be able to calculate this for you.

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Gina Boykin

Expertise

Financial planning, debt management & credit cards, stock investments, mutual funds, bonds, foreign exchange(forex), and saving money tips. If I don't know something I will do my best to research and give you objective and relevant answers.

Experience

Investing, financial advising/planning, saving money

Organizations
Atlanta Youth Empowerment Series

Education/Credentials
B.S. Degree and 10 years of experience in Accounting and Audit. 10 years experience investing in stocks, mutual funds, bonds, real estate, options, and forex

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