Paperwork received shows the following:

"For U.S. federal income tax purposes, (an entity) who
receives the ADS Stock Dividend will be required to include
in its income for U.S. federal income tax purposes the fair
market value of the ADSs received, calculated as of the date
of the distribution, plus the amount of any cash received in
lieu of fractional interests.

"A U.S. Holder's basis for the distributed ADSs will equal
the fair market value of the ADSs received and such U.S.
Holder's holding peroid for such ADSs will commence on the
day following the date of distribution."

This makes me think I should enter the transaction as a
dividend reinvestment. I should look up the Closing price
of CX on 06/11/07 (the date the four shares appeared on the
brokerage statement) and use that price to enter two
transactions. One transaction for the four whole shares
issued and one transaction for the cash in lieu (treating it
as factional shares and then selling immediatly at no gain
or loss?)

Am I making this a lot harder than it really is?




IraS1@aol.com wrote:

>
> If Cemex is issuing shares directly (not a cash dividend being reinvested),
> then you enter the transaction as a split (1.xxxx:1). If you're using
> AccountSync, it should handle the transaction automatically.
>  
> Ira Smilovitz
>
>

I forgot to tell you in the just previous post: This is for
a club that I am keeping the records on NOCA, not Bivio. I
posted the same question to both groups.

Thank you, Marie
>
>
>
> If Cemex is issuing shares directly (not a cash dividend being reinvested),
> then you enter the transaction as a split (1.xxxx:1). If you're using
> AccountSync, it should handle the transaction automatically.
>  
> Ira Smilovitz
>
>
> See what's free at AOL.com.

Hi Marie,

As you have discovered, this is a taxable transaction, where the fair market
value of the stock received, plus the cash in lieu are considered taxable
dividends. I beleive the company is using a figure of 38.3998 per share for
the fair market value of the shares received, so that will be what is
included on the 1099. I suggest that you enter a dividend of 38.3998 times
4, plus the cash in lieu, and then record a purchase of 4 shs at 38.3998.

Rip West
Saint Paul, MN

Hello Rip,

Thanks for your help. I have researched further and found
that Cemex issued 1 ADR for each 40.750966 ADRs held. We
had 200 shares so 200/40.750966 = 4.907859 shares I assume
we received. That times $38.3998 = $188.46.

I entered this as a reinvested dividend for 4.907859 shares
at $188.46. Do you think this will work just as well?

These shares were then sold almost immediately. I entered a
sale of .907859 shares for $34.86 (the cash in lieu) and
another sale for 4 shares using the sales confirmation for
amounts.

Any thoughts?

Rip West wrote:
I suggest that you enter a dividend of 38.3998 times
> 4, plus the cash in lieu, and then record a purchase of 4 shs at 38.3998.
>
> Rip West
> Saint Paul, MN