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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Spots who wrote (787)	3/21/1998 10:08:00 PM
From: Colin Cody	Read Replies (2) \| Respond to of 5810

Cash in Lieu is for the exchange of SHARES. While it possibly is not WORTH IT, you MAY go through the computation of the BASIS for the shares tendered that you got the $$$ for Example you own 1010 shares of WXYZ and the cost to you was $1,010. Several years later... They exchange these (1 share of ABCD for every 100 shares of WXYZ). Therefore you got 10 shares of ABCD plus you got some CASH. The BASIS for the 10 new shares is the same as for 1,000 old shares, or $1,000 The BASIS for the 10 remaining OLD shares is $10, so you may report $10 as the COST for the Cash in Lieu. Colin