Value of old stock - any ideas?

[drc34718]

Need some thoughts here if any have them..

I have a client who worked for Winn Dixie Stores, Inc. from 1974 through about 1996. Acquired about 1500 shares of stock. In 2006 Winn Dixie went through a bankruptcy/reorg, emerged as a new company afterwards, at least from a stock perspective. Shares are currently traded as WINN now..which is also what I think they were prior to the bankrptcy/reorg. Problem is the NYSE, etc. pretty much remove any history once this happens and the stock is relisted. Yahoo, Google, etc. only go back to 11/06 for history which is the date WD emerged from bankrptcy.

with that info, client sold stock in 2006 and I am trying to find cost basis based on dates of acquisition that I have from the stock certificates themselves. Called two broker friends of mine, both with large, recognizable firms, and both came back saying no luck on finding stock price prior to the 11/06 info available. I have spent countless hours on web trying to dig up prices, but no luck. Short of going to public library and manually going through Value Line, etc. to try to dig up prices, anyone have any ideas?

On the flip side, considering the trouble I am having trying to get the price, I would think IRS would have the same issue when trying to determine cost basis..That aside, I do wnat to be as diligent as I can..

Thanks much,

RD Cooper

[Gene V]

I run into the same problem with difference stocks, I try to help the client find his base, but if I can’t find anything on the web, then I dismiss it from the mind and have the client come up with his base the best he can. After all, it’s the client responsibility to know his cost.

[ChEAr$]

Winn Dixie

Likewise, one of my clients down here in Columbus started acquiring their stock back around 1974, payroll deduction plan. It was like pulling teeth, but he did manage to acquire a
print out of his costs in the plan.

And did find some historical prices for certain dates. he of course has this information in the folder I gave him after we were done for the 2006.

Now if push comes to shove, and you just can't find anything otherwise, maybe after tax
season I can get him to mail me the information over here and I can then share it with you.

To talk further, email me at lunstax@bellsouth.net

[Lion]

Company Web Site

Did you try the company's own web site under investor relations or some such topic? Sometimes the company will have their past stock history. (AT&T has numerous worksheets to take you through all the divestitures, mergers, spinoffs, etc.) But, tell the client to search. Good luck.

[erchess]

Stock Thoughts

My Public Library only has the current Valueline which I don't think would go back any further than the other sources OP has consulted. However, if you're in the South chances are that there will be a daily paper on microfilm or microfiche or something newer with the info you seek. If you're not in the South, perhaps a large library would have a Southern paper such as the Atlanta Journal Constitution and again you will find the prices you want.

However, are you sure that the regular market price is your client's basis? Ages ago I bought stock in my employer at a discount. Because I was taxed on the discount in year of purchase, my basis is indeed market price on the date I exercised my options. However, I do not know whether every plan that has ever existed for selling stock to employees at a discount involved that provision.

I personally help my clients research basis or other questions of fact if either the client or I feels that my help is needed. Of course I do charge for it. This time of year I would have to help this client file for an extension and then work on his basis after I've caught my breath after the season.

By the way, I have a question - is it ethical to file a return knowing that you plan to Amend it later when you have had a chance to obtain additional information?

[S T]

Another Thought

Does the T/p have a broker that is handling his account. I have been somewhat successful in passing this research off to the broker to arrive at a cost basis.

Sandy

[Kram BergGold]

If Push Comes To Shove

If the client can't provide basis and I can't find something on the web that I am comfortable with then zero is the answer I use.

[JON]

Where were the shares?

If they were held by a brokerage account they could provide dates of purchase. If held by your client It would have been nice to take dates off before turned over. How much per year does he think he purchased-you have the total shares sold. Trace it back to the year and then come the guesses. I have never seen the IRS require 0 basis on a publicly traded stock. Even when gifted you get the basis from the transferor. Reasonable is what an auditor would look at.

[theresa d]

try bigcharts.com -you can get historical price quotes

[ChEAr$]

Not necessarily

If they were held by a brokerage account they could provide dates of purchase. If held by your client It would have been nice to take dates off before turned over. How much per year does he think he purchased-you have the total shares sold. Trace it back to the year and then come the guesses. I have never seen the IRS require 0 basis on a publicly traded stock. Even when gifted you get the basis from the transferor. Reasonable is what an auditor would look at.

The fact that the stock eventually ended up with a particular broker doesn't mean that
broker will have basis. Stock may have been transferred from another into that
particular account.