I want to find out my basis for stock?

Question

I have shares of mafb stock that i bought 21 years ago. i dont have any paperwork for this transaction. i dont know what i orignally spent either. now mafb is being merged with ncc. what would be my basis for tax purposes? if i covert to ncc and then sell them is there an advantage? or should i sell them now under mafb? any help would be appreciated. also if someone is going through the same merger please reply also. thanks a lot!

but i need the cash so i want to know how to figure out the taxes on it when i sell it

is there any way for the irs to find out my basis? can they look it up for me? i have the original certificates but no prices are on them.

Answer 1

MAFB was a savings and loan that converted to a stock company in January 1990. The original issue price was $2.29 per share (split-adjusted) according to their website [see below].

I'm missing the details of how you acquired your shares -- was it via some other company that merged into MAFB, were you a depositor in the S&L, or what?

These might all have a bearing on your basis.


To this you add any reinvested dividends which you've already declared on your income taxes. Dividends you actually received in cash do not affect your basis. Splits and stock dividends have been included in the $2.29 figure above.

If there were any spinoffs, your basis has to be divided between the spunoff firms and MAFB.

***
selling or holding is the usual investment decision.

if you've decided to sell the shares, the decision as to selling pre-merger or post merger shares is a fairly simple financial one. Likely, sellers pre-merger will get slightly less than post-merger ... if only because trading volume in MAFB is lower than in the acquiring firm.


Does this help?

Answer 2

You could try writing to the company and ask them for the approximate trading price of the stock 21 years ago. They may even have a record of the date you became a stockholder. If not, the average price for the year would have to do unless you know the approximate month when you bought it. You should give them all the details you have, such as the number of shares, even a photocopy of the certificates. The stock may have split several times or paid stock dividends.

It should not matter to you whether you sell the shares now or wait until you receive the new shares. That assumes that you cannot predict what will happen to the price of NCC after the merger. Your basis is the cost of the stock, but without records you can only get an approximate figure. The IRS will accept it as long as it is reasonable.

Answer 3

keep it and don't worry about the taxes on it.