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Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3151
Experience:  EA, CEBS - 35 years experience providing financial advice
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One of our stocks (Texas Utilities) merged with Texas

Resolved Question:

One of our stocks (Texas Utilities) merged with Texas Energy in 2007, resulting in a payout of $69.25 per share for each share of common stock we owned. We originally purchased this stock in 1990, made a few cash purchases in the following years, but the majority of our shares were held becasue of the automatic reinvestment plan we took advantage of. I''m using TurboTax Premier which states it will calculate the cost basis for us, but I''m not sure how to answer the questions about how many shares we purchased and what date because of the reinvestment component. Help!
Submitted: 8 years ago.
Category: Tax
Expert:  Bill replied 8 years ago.

For the dates of purchase you can enter "Various" which means that you purchased the shares at different times. You may want to contact the institution that was handling the automatic reinvestment program to see if they can provide any information on your purchases. You could also request a record of all dividend amounts and the reinvestment prices that have been paid from 1990 up until 2007. You could then try to reconstruct a history based on the number of shares you had and the number of shares that would have to have been reinvested from your original shares. You do not have to submit proof of your cost basis with your tax return. However, if you are audited then you may have to provide documents that justify your basis. Good luck.

See pages D-6 and D-7 -


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