Determining base for inherited stock

[rlegore]

2002 inherited 1334 shares of FMS stock @$12.52, $16,701.68

2007 FMSmerged with BNCL, 826 shares/$35.66 - $29,456 - cash out

           508 shares converted to 1422 shares of BNCL @$9.72/share  $13,821.84

2019 BNCL merged with WSFS, 1546 shares BNCL sold for $2.93/share - $4,582.52 - cash out

           Rec'd 471 shares WSFS @41.94/share - $19,753.74

What would the base be for determining gain/loss for the $4,582.52 cash rec'd in 2019

[MichaelL1]

It looks like in 2002 you had a basis in the inherited stock of $16,701.68.  Fair Market Value at date of death in 2002.

Then in 2007, you say you got cash out of over $29K.  The 2007 return would (or should have) used some or all of the basis in the stock of $16,791.68.

You need to review how this was handled in 2007, and if it was all used in 2007, your basis would then be $0 in 2019, plus any reinvested dividends reported as income.

Normally on mergers, the companies give some information on the merger that can also help assist in deterring the basis, after the merger.

[rlegore]

Thanks for your help.