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Step 5. Cost basis spreadsheets
This is Step 5 of our Stock Recovery process. There is a link to the next step at the end of this page. If you haven't gone through the previous steps, start here: Employee Stock
(Updated Apr 22, 2018.) Questions or comments to: email@example.com
A team of HPAA volunteers has developed spreadsheets to help you deal with the Micro Focus U.S. tax liability and determine cost basis for your HP-related stock (HPInc, HPE, DXC, Seattle SpinCo, Micro Focus, Agilent, and Keysight.)
Note. The cost basis treatment for the original spin/merge used in the HPAA spreadsheets is based on the opinion provided by HPE's outside tax counsel. However, some brokers and administrators apparently interpreted the transaction differently -- or did not report, or reported incorrectly -- to the IRS. The variation in reporting of the original spin/merge means that the April 2019 Micro Focus "Return of Value" transaction cannot be included in the HPAA spreadsheets. [Aug 5, 2020]
Which spreadsheets to download?
The spreadsheets you need depend on how and when you acquired your stock lots.
Be sure you are using current versions.
A. If acquired via employee stock purchase plan. The HPAA spreadsheets cover the various stock purchase plans over the years (which had discounts varying between 33% and 0%.)
If employee stock purchase 1959 through 10/31/2000. To
determine your cost basis for each lot of spinoff shares,
you select from rows that have been pre-filled with official
data for each SOP or ESPP purchase cycle.
►If employee stock purchase
11/01/2000 through 10/31/2017. For this time period, the
HP employee purchase plan was more complex and you need to
determine ordinary income or capital gain.
B. If acquired via service award, option,
equity award plan, dividend reinvestment program, or open-market
purchase -- i.e. not via employee stock purchase.
- Excel tips: Member tips on using complex spreadsheets -- with links to Microsoft articles.
- Member advice on Obtaining Stock Records
- For any of the spinoffs, your broker may have used a different formula than the one suggested in the Cost Basis letter provided by the company -- resulting in a somewhat different value. For example, Fidelity stock issues reported by members
- If you set up a dividend reinvestment program (DRIP) in any of your accounts, additional shares were automatically purchased at market price. You paid taxes on the dividends. The resulting shares have a cost basis and spinoff spinoff shares, but the special ESPP tax calculations do not apply -- therefore, DRIP is not included in the Post-2000 spreadsheet. DRIP is included in Version 14 of the Pre-2001 spreadsheet.
- Be sure to save the spreadsheets you have modified -- under a different filename -- and keep them for future reference when you sell shares, etc.
- The HPAA spreadsheets are based on dates and values from official HP documents. Your records may show transactions executed a day or two later -- or with a penny or two cost variation due to rounding.
- The current spreadsheet versions supersede recent files named "MicroFocusUSTax..." and "HPRelatedStockBasis..." -- plus HPAA files named "HP...Stock_Purchase_Valuation..." dating back to 2004.
Next: Step 6. Stock Tax Return Member advice on stock issues for U.S. tax return. Includes "Using TurboTax for ESPP shares" -- step-by-step with screenshots.
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