American Airlines (AAL)

[193638]

Thanks for contacting the Tax Reporting Department. The cost basis is actually reflecting correctly on this position. The bankruptcy spin-off from AAMRQ to AAL was non-taxable, therefore the original basis and holding period flowed over to the AAL shares received in December 2013. AAMRQ was then liquidated and clients were given escrow shares as a placeholder for possible future distributions. AAMRQ had 4 escrow distributions into AAL, 1 per month in January, February, March, and April of 2014 which will carry a true zero basis. True zero, means that the basis is actually zero and the client will realize a 100% gain on the shares when sold. The tax lots are not incomplete, they were not assigned a value when issued.