In my Schwab account, I was holding ABT shares with an unrealized capital gain. After the ABBV shares were issued, the ABT shares lost the value of the ABBV shares, and now show an unrealized capital loss. All of the capital gain now is attributed to the ABBV shares which, according to Schwab, have a cost basis of $0.00. This is totally different from a stock split, which dilutes both cost basis and capital gain equally. Anybody know whether the way Schwab is showing this is how the IRS views it?
no, that is not how the IRS views it. The cost basis must be split between ABT and ABBV. Typically based on prices around the 1st day of trading. Hoping to get some guidance from ABT on how to do the cost basis. Suspect Schwab is waiting too.
The Abbott website in the Investor Relations section currently says "For shareholders requesting information on cost/tax basis information: Cost/Tax basis information for Abbott and AbbVie shares will be available on our website shortly. We appreciate your patience."