Members of the Maryland Association of Certified Public...

Tax questions

March 03, 1998

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

Q: How should I report the sale of 44 shares of NCR stock that I received as a result its spinoff from AT&T? I got a certain number of NCR shares for the many shares of AT&T I had, so I didn't really pay for anything.

A: AT&T should have provided you with some information when the spinoff occurred. Basically, your tax basis in the NCR stock will be a portion of your tax basis in the AT&T stock you held immediately prior to the spinoff. You will then report the sale of the shares as a capital gain on Schedule D, along with the appropriate tax basis. Your holding period will carry over from the length of time you have held the AT&T stock. Check your files on the NCR spinoff or call the shareholder services department.

James Wilhelm, McLean, Koehler, Sparks & Hammond The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

To ask a tax question, call Sundial, The Sun's telephone information service, at (410) 783-1800. Call 268-7736 in Anne Arundel County, 836-5028 in Harford County, 848-0338 in Carroll County. Using a Touch-Tone phone, punch in the four-digit code JTC 6225 after the greeting. You can also submit questions by e-mail through The Sun's Web site, www.sunspot.net/tax.

Selected questions will be answered in the Business section. No questions will be answered personally.

Pub Date: 3/03/98

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.