Cost basis of warrants from class action

"704set" wrote

I take it that you don't have your own tax advisor.

The safest thing to do is to have a $0 tax basis. But, one would have to have the ability to look into the underlying facts and circumstances that gave rise to you being a part of the class to determine what, if any, basis you have. No one here is going to just spit out a number greater than $0 because no one here has the information necessary to give you that answer.

-- Paul A. Thomas, CPA Athens, Georgia

I usually don't bet on either 0 or 00 (double zero) but I will in this case.

__ Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

Their fair market value which will also be the income you recognize from the settlement (or part of it).

And what information would you require?

For starters, what caused you to be part of the Raytheon suit in the first place?

Your best bet would be to seek the guidance and counsel of your local tax professional who can take a look at all that you have going on and determine what basis, if any, yo have.

First, I'd need to know what was your loss, how the class action compensated you for that loss (warrants, cash, and whatelse), and what was the FMV of each as of the date of compensation.

Second: You have a mildly complex tax situation. To advise you, someone has to comprehend the decision of the class action suit. Which means you explain it here and pay someone to do it for you.

Finally: Whatever you read in this newsgroup is properly classified as non-binding opinions of tax professionals or as I like to say "Tell the IRS Auditor you read it on the Internet."

Dick