Cost Basis

[S T]

So what is the consensus of opinion
on selling stock that was issued as part of the demutualization of Insurance Companies.

I have another one Prudential sold in 2010 - Client has not a "clue"

Do we use "zero" basis or try to assign a value ?

As I understand it - it is still in court

Any wisdom or how any of you are reportiing??

I am on extension pending some other Partnership K-1 forms, so this is not urgent.

Thanks,

Sandy

[Dusty2004]

I present to the client in a letter

So what is the consensus of opinion
on selling stock that was issued as part of the demutualization of Insurance Companies.

I have another one Prudential sold in 2010 - Client has not a "clue"

Do we use "zero" basis or try to assign a value ?

As I understand it - it is still in court

Any wisdom or how any of you are reportiing??

I am on extension pending some other Partnership K-1 forms, so this is not urgent.

Thanks,

Sandy

I present to the client in a letter the 2 options and let them choose.

Dusty

[Gretel]

Also depends if you are in the same district where Fisher won the case. If you are, you and your clients have more piece of mind if choosing to take basis then if you are not, like me. I have suggested to take basis but also advised client of possible consequences.

For sure, you won't find any consensus on this issue.

[Burke]

I have another one Prudential sold in 2010 - Client has not a "clue"
Do we use "zero" basis or try to assign a value ?Sandy

If you are saying your client sold Pru stock which was received in the demutualization process and does not know the value at that time, it was $30 per share ($29.++++ rounded up.) If you are asking whether to use that value or zero -- of course, everybody wants to use Fischer for substantiation. I still think the Tax Court was dead wrong on this one.