TAXMAN Posted February 16, 2011 Report Share Posted February 16, 2011 Has anyone heard whether or not we are allowed to update basis on stock that was demutualized. One that comes to minf was the old Blue Cross/Athem that did this and gave everybody that paid preminums received stock. Old status was NO. Basis equalled ZERO. Any body know?? :dunno: Quote Link to comment Share on other sites More sharing options...
JRS Posted February 16, 2011 Report Share Posted February 16, 2011 The following is an article from Fairmark.com, back in August of 2008. http://www.fairmark.com/news/08081001-demutualization.htm You will need to more research as the court's decision basically ruled against the IRS's stand of zero basis, but left it at that. Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted February 17, 2011 Author Report Share Posted February 17, 2011 I read the whole case and ruling. Key note Unless IRS appeals. Do we take the position that the sale of this stock should have a NO Net Gain. I have several potential clients that would like to sell this stock. How would YOU advise or better yet What position would you take if preparing the return? Thanks to all who respond. Quote Link to comment Share on other sites More sharing options...
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