Thursday, July 27, 2006

McClatchy-KRI exchange for tax purposes

I got my check from McClatchy for $40 cash per share and 0.5118
a share of McClatchy stock for each share of KRI stock, plus McClatchy bought the fractional share of KRI at the prevailing price on June 27, 2006.

However, I don't have a regular stock broker since I handle my own portfolio, and I'm not sure how much of the KRI tax basis to assign to McClatchy, how much I owe or lost on the fractional KRI share and where to put the $40 per share at IRS time.

A simple swap of shares would have been simple: The tax basis for KRI stock would have transferred in its entirety to the new stock. But the $40 adds to the confusion. And McClatchy's web site says that it paid $59.98 per KRI share (the 0.5118 McClatchy share plus the $40 cash) for "cash and other considerations," but I thought McClatchy had agreed to pay nearer to $65 in total.

Any tax experts out there for those of us who do not have brokers?

Is there anyone at the BJ or what once was KRI who can help the BJ retirees on this one?

Thank for any accurate information.

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