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drbuckman
New Member

Stock question - was my Talen stock inherited or not. Stock was split off as another company from stock that was inherited. Do I use the cost bases on the day inherited

The stock was inherited in 1991.  In 2015, another corporation was split off and issued stock on a 1 share of their company per 8 shares of the original company.  The new company purchased back all stock in 12/16.  What is my cost basis?  the day I inherited the original stock (PPL) or the day the Talen stock was issued?
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TomYoung
Level 13

Stock question - was my Talen stock inherited or not. Stock was split off as another company from stock that was inherited. Do I use the cost bases on the day inherited

"Stock question - was my Talen stock inherited or not."

YES.

You acquired Talen on the same day as your inheritance of PPL. 

It's not clear of the progression of events here - it kind of sounds like that "another corporation" was split off from Talen - but I'm not sure, but in any case each time there's a spin off or split off or whatever you allocate your basis in the "original" company between the "original company" and the "new" company based on the relative value of your holdings in the two companies immediately after the event.

Tom Young

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TomYoung
Level 13

Stock question - was my Talen stock inherited or not. Stock was split off as another company from stock that was inherited. Do I use the cost bases on the day inherited

"Stock question - was my Talen stock inherited or not."

YES.

You acquired Talen on the same day as your inheritance of PPL. 

It's not clear of the progression of events here - it kind of sounds like that "another corporation" was split off from Talen - but I'm not sure, but in any case each time there's a spin off or split off or whatever you allocate your basis in the "original" company between the "original company" and the "new" company based on the relative value of your holdings in the two companies immediately after the event.

Tom Young

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