The merger was intended to qualify as a tax-free reorganization under Section a of the Internal Revenue Code of , as amended, for U. As a result, Alcatel Lucent and Lucent believe that you will not recognize gain or loss on the exchange of your Lucent common stock for Alcatel Lucent ADSs, although gain or loss may be recognized upon the receipt of cash in lieu of a fractional ADS.

Alcatel Lucent and Lucent cannot assure you that the Internal Revenue Service will agree with the treatment of the merger as a tax-free reorganization. Tax matters are complicated, and the tax consequences of the merger to each Lucent shareowner will depend on the facts of each shareowner's situation. Lucent shareowners are urged to read the discussion set forth in the proxy statement related to the merger under the heading "The Merger — Material U.

Cost Basis

Federal Income Tax Consequences" and to consult their own tax advisors for a full understanding of the tax consequences of their participation in the merger. A copy of the proxy statement was mailed to shareowners prior to the September 7 Lucent shareholder meeting and is also available on the Internet at http: The tax discussion begins on page This document contains information related to the special distribution of the Lucent Technologies shares:.

Full shares of Lucent Technologies should have been received on or about September As previously announced, shareowners entitled to a fractional share of Lucent Technologies received a cash payment instead. The fractional shares of Lucent Technologies common stock have been aggregated and sold through an independent agent, with the net proceeds being paid as appropriate to those entitled to a fractional share.

The taxable gain or loss that must be recognized for income tax purposes will be equal to the difference between the cash received and shareowner's tax basis in the fractional share you can determine your tax basis using the worksheet that follows. It is necessary to determine your "tax basis" to calculate your net gain or loss on the sale of stock. This tax basis is then compared to the sale price of that stock to determine your net gain or loss.

If you bought your shares and did not acquire them as a gift or in a similar fashion , "tax basis" refers to your cost of acquiring your shares of stock. If you did not acquire your shares by purchasing them, consult your tax advisor to determine your tax basis. The worksheet that follows will help you do this.

You can use the following worksheet to calculate the taxable gain or loss for the cash received in lieu of the fractional share of Lucent Technologies.

A hypothetical example is provided along with space to fill in your actual numbers. Because the Lucent Technologies distribution ratio was. This is the new total tax basis for Lucent shares. You can use the cost basis worksheet available on Avaya's Web site at http: In addition, shareowners who choose to sell either their Lucent or Avaya shares will need to apply the same tax basis allocation to determine taxability on any net gain or loss.

Based on the average high and low prices at which Lucent and Avaya traded on October 2, —as reported for the New York Stock Exchange transaction— Box New York, NY You can use the cost basis worksheet available at http: In addition, shareowners who choose to sell either their Lucent or Agere shares will need to apply the same tax basis allocation to determine taxability on any net gain or loss.

Based on the average high and low prices at which Lucent and Agere Class A common stock and Agere Class B common stock traded on June 3, - as reported for the New York Stock Exchange transaction - the tax allocation percentages are calculated to be as follows:. Box Providence, RI Send an email www. Skip to main content. Menu About Nokia Careers Contact Us. Worldwide Nokia Global Site Worldwide Office Directory. Search form Search form Search.

What's the cost basis of my stock? - TurboTax Support

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Training NokiaEDU Optical Network Certification Service Routing Certification SRC. Endorsements Nokia newsroom Press releases Subscription center. This document contains information related to the special distribution of the Lucent Technologies shares: A worksheet that will help you complete important tax calculations. Tax basis allocation It is necessary to determine your "tax basis" to calculate your net gain or loss on the sale of stock.

How to calculate your tax basis You can use the following worksheet to calculate the taxable gain or loss for the cash received in lieu of the fractional share of Lucent Technologies.

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