Clearwire (CLWR) & Clearwire Rights (CLWRR)
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Clearwire (CLWR) & Clearwire Rights (CLWRR) Our club sold our Clearwire Rights (CLWRR) in the month of January 2010. On my valuation dated 1/31/10 I noticed that the Cost Basis for CLWR went down. Was that due to selling the CLWRR? I have never entered CLWRR into BIVIO (it did not come across on the interface from TDAmeritrade) as I was waiting to hear if it should be considered a spin-off or what. Can anyone explain what has occurred? Thank you, Barbara Hi Barbara,
Selling the rights does not affect the cost basis of CLWR, but issuing the
rights as of 12/1/09 does reduce the cost basis. You can see that this was done,
if you go to Accounting|Investments, and click on CLWR. CLWRR was treated as a
spin off, and a small amount of the cost of CLWR was allocated to these rights.
This allocated cost was deducted when the rights were sold in January.
Everything appears to me to have been done correctly.
If you have any other questions, comments, or suggestions, please
reply to this message. Thank you for using bivio,
Rip West bivio Inc. Rip, when it comes to taxes for 2010, the cost basis for CLWRR will be $0.00 so that all proceeds received from selling (less commission) will be taxable?Am I correct when I say that Barbara -----Original Message----- From: Rip West <ripwest@comcast.net> To: The Club Cafe <club_cafe@bivio.com> Sent: Mon, Feb 1, 2010 5:19 pm Subject: Re: club_cafe: Clearwire (CLWR) & Clearwire Rights (CLWRR) Hi Barbara,
Selling the rights does not affect the cost basis of CLWR, but issuing the
rights as of 12/1/09 does reduce the cost basis. You can see that this was done,
if you go to Accounting|Investments, and click on CLWR. CLWRR was treated as a
spin off, and a small amount of the cost of CLWR was allocated to these rights.
This allocated cost was deducted when the rights were sold in January.
Everything appears to me to have been done correctly.
If you have any other questions, comments, or suggestions, please
reply to this message. Thank you for using bivio,
Rip West bivio Inc. Hi Barbara.
<< Am I correct when I say that when it comes to taxes for 2010, the cost basis for CLWRR will be $0.00 so that all proceeds received from selling (less commission) will be taxable? >> No, that is not correct. When the rights were issued in 2009, $155 of the
cost of CLWR was allocated to CLWRR. When the rights were sold in 2010, that
allocated cost was applied to the sale. You can see this if you go to
Investments and click on CLWRR.
Rip West Saint Paul, MN Thank you for pointing me in the correct direction but I have one last (I hope) question regarding CLWRR. When I ran my year-end valuation, I have a message at the bottom that says: Note: The following investment(s) do not have current valuations:12/01/2009 Clearwire Corp (CLWRR) Do I need to do anything regarding this statement? Barbara -----Original Message----- From: Rip West <ripwest@comcast.net> To: The Club Cafe <club_cafe@bivio.com> Sent: Sat, Feb 6, 2010 9:16 am Subject: Re: club_cafe: Clearwire (CLWR) & Clearwire Rights (CLWRR) Hi Barbara.
<< Am I correct when I say that when it comes to taxes for 2010, the cost basis for CLWRR will be $0.00 so that all proceeds received from selling (less commission) will be taxable? >> No, that is not correct. When the rights were issued in 2009, $155 of the
cost of CLWR was allocated to CLWRR. When the rights were sold in 2010, that
allocated cost was applied to the sale. You can see this if you go to
Investments and click on CLWRR.
Rip West Saint Paul, MN Hi Barbara,
No, you don't have to be concerned about that message. The report is just
saying there were no transactions for CLWRR on 12/31/09, so they used the value
as of 12/30/09.
Rip West
Saint Paul, MN
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