Cost Basis Guide
Cost Basis Worksheet Guide and Calculator:
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Cost Basis Worksheets for: |
Why Is Knowing Your Cost Basis Important?
Knowing the cost basis of your AT&T Inc. shares is necessary for tax-reporting purposes when you sell or otherwise dispose of the shares.
The cost basis is how much you paid for your shares after you take into account stock splits, acquisitions and other events. In general, your taxable gain or loss is the difference between your cost basis and the price you receive when you sell the shares, minus brokerage fees.
What You Need to Know to Calculate Your Cost Basis
To determine your cost basis, you need to know the original price paid for the shares, the date you acquired them and how you acquired them.
You may have become an AT&T Inc. stockholder or acquired additional shares through open-market purchases by participating in The DirectSERVICE Investment Program (or one of its predecessor plans) or through employee plans.
You may have received them in exchange for shares you held in Ameritech, Pacific Telesis or Southern New England Telecommunications.
Or you may have acquired them as a result of AT&T's Jan. 1, 1984, divestiture of Southwestern Bell and six other regional operating companies.
To get started, go to How to calculate your cost basis and choose the appropriate worksheet to help make your calculation.
You'll need your personal records, bank or brokerage statements, inheritance or gift records or dividend reinvestment statements to help determine your cost basis.
If you acquired shares through the Direct Stock Purchase and Reinvestment Plan (which is now called The DirectSERVICE Investment Program for Stockholders of AT&T Communications Inc.) or employee plans, you may also determine the tax basis of shares from plan statements.
Additional information about calculating cost basis and gains and losses may be found in IRS Publication 550, Investment Income and Expenses.
For information regarding The Direct SERVICE program or other stockholder information requests, you may call the toll-free AT&T Inc. Stockholder Services hotline at (800)-351-7221. We also recommend that you consult your tax adviser.
