This is not a matter of wether you bought or sold stock between years.

There are two scenarios

1. DDI share is a cost to you of 30 cents and when sold the selling price is compared to .30 to realize a loss or a gain.

The KWG stock is deemed to be lower by 1.8 cents in value so if you paid 10 cents for a KWG stock and now sold it for 15 cents, your gain would be 15-10+1.8=6.8 cents per share. The important point is what ever you paid to purchase a KWG share minus the 1.8 cents will be the base to which you realize a loss or gain when you sell it.

2. If the KWG share is deemed not to be lowered in value by the distribution of DDI shares then the base price you paid for the KWG share will be used for tax purposes to determine a gain or loss.

When you sell the DDI shares your base cost would be 0. So if you sell the DDI shares for 30 cents each then the gain would be 30 cents.

This is my interpretation. Feel free to correct me.

In our case I think we are using 1. as the bases of the DDI share distribution.