bennison@hare.DEC (03/07/85)
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I have an AT&T divestiture question. I've managed to figure out my new
tax basis for all the regional holding companies. At the time of
divestiture I transferred everything into Bell South. Now I have to
figure out what part of the gains on the sale of the locals were short term
gains and what part were long term gains. The transaction slip gives a
transaction date for the sale of the locals of 8 APR 1984, which would seem to
imply that any AT&T stock acquired before 8 APR 1983 would convert to locals
with long term gains. However, the divestiture prospectus states that the
distribution date for the locals should be considered to be 1 JAN 1985.
Does this have any bearing on the calculation of long/short term gains?
Vick Bennison
...decvax!decwrl!rhea!tools!bennison
(603) 881-2156ecl@ahutb.UUCP (e.c.leeper) (03/09/85)
REFERENCES: <995@decwrl.UUCP> > I have an AT&T divestiture question. I've managed to figure out my new > tax basis for all the regional holding companies. At the time of > divestiture I transferred everything into Bell South. Now I have to > figure out what part of the gains on the sale of the locals were short term > gains and what part were long term gains. The transaction slip gives a > transaction date for the sale of the locals of 8 APR 1984, which would seem to > imply that any AT&T stock acquired before 8 APR 1983 would convert to locals > with long term gains. However, the divestiture prospectus states that the > distribution date for the locals should be considered to be 1 JAN 1985. > Does this have any bearing on the calculation of long/short term gains? > 1) I presume you mean "1 JAN 1984," not 1985. 2) I would go with the date of the acquisition of the original AT&T stock, thereby treating this as if it were a stock split. I'm not sure what the distribution date means, but it seems unlikely in the extreme that all the proceeds should be considered short-term gains (or losses). This is just my opinion. Evelyn C. Leeper Note temporary kluge for new address => ...{ihnp4, houxm, hocsj}!ahuta!ahutb!ecl
hrs@homxb.UUCP (H.SILBIGER) (04/11/85)
The tax basis of the stock transaction which took place when RBOC shares were consolidated depends indeed on when the AT&T stock from which they came was acquired. If you were in the AT&T dividend reinvestment plan, some of those shares were acquired within the holding period for short-term. If you were an AT&T employee and got some AT&T shares in the 83 distribution, which you actually received in 84, the RBOC shares from that distribution were also short term when swapped.