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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
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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
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