I'm not even sure the IRS cares about such a small amount, but here goes:
I received 48 shares of stock over the space of about 6 months in 2000/2001 from my company (not on an ESPP, as a bonus). These shares sat there until 10/2005, when the company went through an 8:1 reverse split -- then I had 6 shares.
In 03/2006, the company was bought out and I received a few bucks for the shares. Now I have to report it. They want a cost basis. Here is what I can figure out:
* 21 shares given to me on 10/25/00 -- I have no idea what the value was, but my statement for the end of that month prices the shares at $27.13
* 27 shares given to me on 04/24/01 -- again, not sure of the value on that day, but the statement for the end of that month values the shares at 15.68
Averaging the shares out leaves me with a price of 21.41 -- my question is, do I use this price as the cost basis, or am I supposed to multiply it by 6 (my reverse split share total) and use *that* number?
2007-04-03
10:34:12
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2 answers
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asked by
Loki Wolfchild
7