Basis BasicsTo truly understand the challenges of stock basis research, you must first learn how to calculate stock basis. The cost basis of any investment is simply what you paid, including fees and commissions. However, complications arise when changes are made to the stock. These changes include stock splits, stock dividends, reinvested dividends and capital distributions, as well as changes to corporate structure. The following paragraphs describe the basic methods permitted by the IRS for determining cost basis, AT&T's history, and calculating cost basis for AT&T Corp. dating back to its transfer before 1984 until today. Methods for Determining Cost Basis The IRS allows for several methods for determining cost basis on inventory. Permitted methods are specific stock identification, first in, first out (FIFO), or average basis. The specific identification of actions is exactly what it says; you identify the shares you sell based on the lot in which you purchased them. With FIFO, the IRS assumes you sold the first shares you purchased. This generally ends up being the least tax-efficient way to sell stocks because stock prices increase over time and the first stock you buy will have the lowest basis. The IRS also allows you to choose to use the averaging method. This method allows you to take the average of the shares you purchased and multiply it by the number of shares you sell. In order to make this choice, you must send written notice to the broker or manager of your account. On the next page is a basic basic calculation example for each method. Basis Involvement The importance of determining the true cost basis of y...... middle of paper...... 0070654341. Accessed April 14, 2013 http://www3.alcatel-lucent. com/wps/portal/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w3MfQFSYGYRq6m-pEoYgbxjgiRIH1vfV-P_NxU_QD9gtzQiHJHR0UAAD_zXg !!/delta/base64xml/L2dJQSEvUUt3Q S80SVVFLzZfQV80OEY! http://www.smkinfo.com/DTC%20Pages/Tax%20Basis%20Pages/ncr.htm http://www.cmcsa.com/cost-basis.cfm http://historicalstockinfo.com/attoldfront.html http ://www.fundinguniverse.com/company-histories/lucent-technologies-inc-history/ goes with above (International Directory of Company Histories, Vol 34, St. James Press, 2000 http://www.fundinguniverse. com/ company-histories/ncr-corporation-history/ goes with the above (International Directory of Company Histories, Vol 30, St. James Press, 2000Copyright © New Paradigm Resources Group, Inc. 2014, All rights reserved – Goes with the link below http://www.nprg.com/Company/1959-att-wireless-services-inc