Value of expired BMY CVR

Forum|Forum|4 years ago
February 1, 2022
8 replies
62 views

Can someone advise me on how to report the expired CVRs from the Bristol Myers/ Celgene merger? I received these as an employee. I did not purchase. The conditions of the CVR were not met so they expired.

The 1099 I received has a cost basis for each lot on the supplemental section. Do all of the expired CVRs get reported as a loss? To me, since I didn’t purchase them, I didn’t sell them, and they ended up worthless, something seems wrong.

Thanks

TurboTax Premier Online

DaveF1006

Alumni - Intuit

It depends. To clarify, how does your form 1099-B read?

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seattletom1Author

Level 2

1099-b has: (expired for action), (quantity), (date acquired), (date disposed), then zero for 1d, 1e, and gain/loss.

the 1099 supplemental has: (type RSU), (quantity), (date acquired), (date disposed), (proceeds 0), (ordinary income reported $XXX), (adjust cost basis XXX), (adjust gain/loss -XXX)

GeorgeM777

Alumni - Intuit

Because the milestones applicable to the CVRs were not met, the CVRs were no longer eligible for payment. Because you received a 1099-B evidencing the CVRs and their value, albeit zero, you can enter the information into TurboTax just as it appears on your 1099-B. You may be able to upload the 1099-B into TurboTax without having to manually enter the information.

We realize these transactions will likely not have an impact on your return; however, the fact that you received a 1099-B, a document which is also filed with the IRS, it is appropriate to include them on your return.

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