Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.PCS 1/10/84; site ahutb.UUCP Path: utzoo!watmath!clyde!burl!ulysses!mhuxr!ihnp4!houxm!ahuta!ahutb!ecl From: ecl@ahutb.UUCP (e.c.leeper) Newsgroups: net.taxes,net.invest Subject: Re: Divestiture tax question Message-ID: <544@ahutb.UUCP> Date: Sat, 9-Mar-85 09:53:00 EST Article-I.D.: ahutb.544 Posted: Sat Mar 9 09:53:00 1985 Date-Received: Sun, 10-Mar-85 08:20:17 EST References: <995@decwrl.UUCP> Organization: AT&T Information Systems Labs, Holmdel NJ Lines: 25 Xref: watmath net.taxes:770 net.invest:558 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