Mr Cooper Group Inc (COOP)

[rainbow1111]

We should have carryover tax basis AND carryover holding period.


http://www.fool.com/personal-finance/taxes/how-to-calculate-a-holding-period.aspx

Stock splits and spinoffs: If you receive a stock dividend, your holding period for the "new" shares is the same as for the "old" shares. This is also true if you receive new stock in a company that has been spun off from the original company that you purchased.

For example, Jack purchased 100 shares of stock in April 2006. In June 2007, the company declared a 100% stock dividend, also known as a 2-for-1 stock split. Jack now has 200 shares of the company stock, but they all have the same holding period -- starting with the date of original purchase back in April 2006.

Here's another example. Using the same facts as above, let's assume that instead of declaring a stock dividend, the company spun off a subsidiary. Jack receives an additional 30 shares of the new company in January 2008. Even though these are brand-new shares in a brand-new company, they will have the same holding period as the original shares that were purchased back in April 2006.

There are other tricks and turns regarding holding periods. These are only the common rules, and they by no means cover every holding-period situation. So if you find yourself in the middle of an unusual transaction, check the holding-period rules carefully. The tax dollars you save might be your own.