Quanex Merger/SpinOff

[JasonB]

Good Morning,

I have a hopefully simply tax question.... I began purchasing through a
DRIP in Quanex in 2000. In 2008 Quanex had a split/merger.

I received 2 1099-Bs for the Quanex Building Products Corporation
An a check of 39.20 per share for Quanex after the split.

How do I figure out my cost basis and fill out my 2008 taxes...finally!!!!!

I only owned 4.7 shares of Quanex and this is starting to feel like a lot
of headache. I am looking for help on how to work this out so I can fill
out my schedule D.

Thanks,
Jason
-------------------------------------

##-----------------------------------------------##
Newsgroup Access Courtesy http://www.rockryno.com/
Tax and Accounting Software Forums
Web and RSS access to your favorite newsgroup -
misc.taxes.moderated - 24087 messages and counting!
##-----------------------------------------------##
.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

[removep...@yahoo.com]

On Dec 15, 6:35�am, jasonBlues092_at_yahoo_dot_...@foo.com (JasonB)
wrote:

> Good Morning,
>
> I have a hopefully simply tax question.... I began purchasing through a
> DRIP in Quanex in 2000. �In 2008 Quanex had a split/merger.
>
> I received 2 1099-Bs for the Quanex Building Products Corporation
> An a check of 39.20 per share for Quanex after the split.
>
> How do I figure out my cost basis and fill out my 2008 taxes...finally!!!!!
>
> I only owned 4.7 shares of Quanex and this is starting to feel like a lot
> of headache. �I am looking for help on how to work this out so I can fill
> out my schedule D.

So was it a split or a merger? If it was a split, was it a reverse
split?

Was it a check of $39.20 per share (times 4.7 shares yields $184.24),
or was the total check $39.20?

You should receive a letter from the company telling you how to handle
the event. Or you can look it up on their website, or call their
investor relations, or just ask your brokerage firm.

Suppose Quantex is bought for cash -- ie. it is merged into another
company. Then it's as if you sold each share for $39.20 -- proceeds
are $184.24 minus the fees). You know how much you paid for each
share.

Suppose Quantex is bought for cash and stock. Suppose every 2 shares
of Quantex becomes 1 share in the new company. But any fractional
shares are paid out in cash. So after the merge you have 2 shares of
the new company, and 0.35 fractional shares which is paid out in cash.

There are many possibilities.