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To: twt who wrote (21689)	3/11/2000 11:15:00 PM
From: Howard S.	Respond to of 25814

I'm no tax expert, but I believe your cost basis is now $19/share and you use the original '97 purchase date, making the gains long term.

To: twt who wrote (21689)	3/12/2000 1:35:00 PM
From: Walter High	Respond to of 25814

TWX, Everything related to assessing the tax on your gain revolves around your "basis" in the stock. You bought 50 shares in 1997 for $1900 (don't forget to add in the commission on the trade as part of your basis; it may be $1912 if you are charged $12 a trade). When the stock split 2-1, you were issued new share certificates to replace the old ones. You probably never saw them because I would imagine you hold your stock in "street name" with your broker. The basis of these certificates was the original basis of your purchase, but now spread over 100 shares. When you sold 50 shares, it was half of your holdings, so your basis in the sale is half of the original cost. If you try to use up your entire basis when you only sell half your original holdings, you are asking for trouble should you ever be audited. Your original purchase date is the operative one for tax purposes. The split date has no bearing on whether the gain is long-term or short-term. In your case, everything will be long-term since you made the sole purchase in 1997. Walter High