Accounting method (capital gains tax)

[zwick99]

I bought company A that eventually merged with company B. They eventually spinoff companies A1, A2, A3 and A4.


When I sell company A4 do I have to list the acquisition price as a portion of the original A or can I use zero as the acquisition price? The reason I want to use zero is because I have another company with a capital loss and I would be able to offset the loss with the gain.

 

[NoVa Lion]

I bought company A that eventually merged with company B. They eventually spinoff companies A1, A2, A3 and A4.


When I sell company A4 do I have to list the acquisition price as a portion of the original A or can I use zero as the acquisition price? The reason I want to use zero is because I have another company with a capital loss and I would be able to offset the loss with the gain.

You need to talk to a tax accountant. There is now where NEAR enough information for even an expert to answer your questions let alone the denizens of this board. It's WAY more complicated than you think it is. When you BOUGHT company A what did you buy, the stock or the assets? What was spun off to you, stock or assets? What did you see, stock or assets?