Banc one was the original bank stock purchased in Feb., 1997. Banc one was purchased by JP Morgan in July 2004. I sold some shares of JPM in 2013. How is the cost basis determined?
Since this was a non-taxable stock for stock merger your basis and holding period carries over to the new stock. So if you had 100 shares of Bank One with a basis of $10,000, then immediately after the merger you'd have 132 shares of JP Morgan with a basis of $10,000. Of course if anything has happened subsequent to the merger to affect your basis in JP Morgan - stock splits, spin offs, other mergers, etc. - you'd have to take that into account too in determining the basis of the JP Morgan stock you sold in 2013.
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