Basis question

From: David Hodges <dhodges@recol.com>
Subject: Basis question
Date: Mon, 15 Mar 1999 20:02:39 -0500

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I have been doing my elderly mother's taxes for several years now, with the
help of TurboTax, and so far haven't encountered anything I couldn't
handle. This one has me stumped, though.

My late father once bought a few shares of AT &T apparently directly from
the company, not through a broker. This year AT &T must have converted some
of those shares to Lucent stocks because my mother now owns some Lucent and
she got a 1099-B from AT &T for about $2000. I want to report this sale but
my mother has no knowledge of when the stock was bought or how much my
father paid for it. So, what do I use for a basis? Does she have to pay
capital gains on the whole amount? TurboTax is silent on this issue!

Thanks,
David Hodges



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