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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
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I am trying to determine my cost basis are now Disney

Customer Question

Customer: I am trying to determine my cost basis for what are now Disney shares. I received Pixar shares from my mother's estate, valued at $14.56 per share on her date of death back in 2/17/1997. I held those shares, and subsequently received Disney shares when they purchased Pixar. What would cost of each share of Disney now be, taking into account my purchase date?
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Submitted: 1 year ago.
Category: Tax
Expert:  Angie replied 1 year ago.

I've done a little research on this for you. According to this article from CNN, http://money.cnn.com/2006/01/24/news/companies/disney_pixar_deal/ Disney issued 2.3 shares of Disney Stock for each share of Pixar stock owned by shareholders. The fact the Disney bought out Pixar does not affect your basis in the stock. Your basis is the value of the stock as of the date of your mother's death, which you mentioned was $14.56. Therefore, your basis is 14.56 for each 2.3 shares of Disney stock that you sold.

I hope this helps shed some light on this for you. Should you need additional information,please feel free to reply.