This is not about an IRA but I don’t know who else to ask? Client bought a stock AMR couple years ago. It was the bankrupt American Airlines. They merged with US Air and emerged out of BK. When merger happened AMR was worth $0 but the shareholders were top receive stock of AAL over 90 days. Would the original cost basis travel to the new stock for tax purposes? Would never have received the AAL stock if not for the purchase of the AMR stock. Do all three of the stock shares have their own basis. The original AMR was 13,000 shares at a purchase price of $5,000 and after the 20 to 1 reverse split ended up with 9,762 which were sold for $398,000. Original purchase was Wells Fargo and then ACAT to Fidelity. Fidelity 1099 shows the sale to be short term and it should be long term? Any suggestions or thoughts?