Tax Basis Worksheet
Please be aware that the information contained herein is general in nature and should not be construed to be legal, business, or tax advice. You should consult your personal tax advisor as to the particular tax consequences of each transaction highlighted here, including the applicability and effect of any state, local, and foreign tax laws.
Verizon Communications and Its History
Verizon Communications, (NYSE:VZ), formed by the merger of Bell Atlantic and GTE, is one of the world's leading providers of high-growth communications services. The merger was completed back on June 30, 2000. But, Verizon’s roots began back in 1984 with the AT & T divestiture. At that time, NYNEX and Bell Atlantic were split out of AT&T. The tax basis of allocation at that time was:
AT & T Corp 28.50 %
NYNEX 9.84 %
Bell Atlantic 10.49 %
Then, NYNEX and Bell Atlantic merged on August 14, 1997,
forming the then new Bell Atlantic Corporation. After the merger, the tax basis allocation for the new Bell
Atlantic Corp stock resulting from the ownership of NYNEX stock should be:
Cost of NYNEX stock ÷
.768 = Tax basis new Bell
Atlantic stock
GTE Corp itself was a merger of Contel Corp and GTE Corp.
That merger occurred back on March 14, 1991.
After that merger, and leading upon to the formation of Verizon, the
Contel through Verizon tax basis allocation should be:
Cost of Contel stock ÷ 1.27 = Tax basis of new GTE Corp stock
Then,
Tax basis of new GTE Corp ÷
1.22 = Tax basis of Verizon stock
If only GTE Corp stock was purchased prior to becoming part
of Verizon, then the tax basis allocation of the GTE stock should be:
Cost of GTE Corp stock ÷ 1.22 = Tax basis
of Verizon stock
For further information about the tax basis allocations, visit http://investor.verizon.com/shareowner/tax_basis.html