Walmart Stock

[Trnr395]

Hello,

I have calculated the cost basis and gain on the sale of some walmart stock for my client. They have dividend reinvestment, company contribution and payroll contribution. I have added the div. reinvestment and payroll contribution in figuring cost basis and didn't include the company contribution. Now that the 1099s show the cost basis on the short term sales I figured I would calculate that as well. They have used all of the cost including the company contribution as well. Anybody have any thoughts on this, should I be including the company contribution also.

Thanks

[Gail in Virginia]

If the company contribution amount was included in the client's w-2 as a taxable fringe all along, then it would definitely be part of the basis. The stock purchase plan that I was in years ago worked like that - the 15% the company paid was included in my earnings each time I contributed to the plan, so my basis included the company contributions.

[TAXMAN]

I have had some that went both ways. If you look at several paystubs you can most of the time tell which way the Co. is doing it. without the stubs CO contact thru HR is another way to find out. Just be careful.

[kris1]

Yes, company contribution amount would be part of the cost basis if amount was included in the client's w-2 as a taxable fringe.

[kcjenkins]

Walmart always adds their contribution to the employee's W-2, so it is always part of the basis.