Stock Buy Back from Ag Coop

[nathanmulder]

Our local coop we sell milk to sold out to a larger Coop this year.  As part of the deal we patrons are being paid back our stock over time.  How do I report this?  We received the stock a little every year in lieu of patronage dividends.

[ToddL99]

To clarify, is this stock that you are able to sell?

I ask because you mentioned "being paid back our stock over time".

[nathanmulder]

It is not a transferrable stock.  We are given stock from the cooperative we sell milk to.  Before the sale/merger to the new owner, we could only redeem stock if the coop approved of the buyback.  The merger agreement was that the new company would buy our stock from the old company over a 3 year period.  I did not receive any sort of a 1099 or other tax form indicating how much they paid us for stock in 2020.

Thank you,

Nathan

[ThomasM125]

I believe what you are saying is that you are giving up your stock for stock in the new cooperative, a little each year. If so, you have a sale of an investment that you need to record in TurboTax.

You would report this as a sale of stock by using these menu tabs in TurboTax:

1. Income and expenses
2. Investment income
3. Stocks, Mutual Funds, Bonds, Other
4. Indicate the you did not receive a form 1098-B
5. Choose I'll enter a summary of each sales category
6. Enter the value of the stock received as the proceeds
7. Enter the cost basis of the shares you surrendered as the cost basis
8. Designate the holding period as long term, assuming you held the shares more that one year