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

To: Charlie Schultz who wrote (1643)	12/30/1998 9:10:00 PM
From: James Burke	Read Replies (2) \| Respond to of 5810

I have the same question as Charlie. If I trade for a loss on 12/31/98, I believe I can take the loss for 1998 since it is the transaction date and not the settlement date that should be used, correct? Also, this might be wishful thinking but I do know some one doing this on his return, when a stock splits, is it possible to declare the matched shares as costing $0 and maintain the price paid for the original shares? For ex., I paid $100 a share for XYZ. It splits at $110. Can my cost basis for the original shares be $100 and the matched shares $0, or must they be divided equally, ie. $50 a share for both the original and matching shares? If not, I could sell the original shares for a loss and donate the $0 shares to charity for added tax benefits. I doubt this is legal. Any one know for sure?