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Get your taxes done using TurboTax
"Cash in Lieu" occurs when there is a merger, acquisition, or reverse stock split that does split into a whole number of shares. Instead of issuing a partial share, you are given cash instead or "in lieu" of the partial shares. The amounts are usually rather small (less than the price of one share of the related stock). The way I treat them is to report the acquisition date as "Various" the cost basis as $0, and the holding period as short term, basis not reported to the IRS - Category B. This results in the highest possible tax on the transaction, but considering the time it would take to determine the actual cost basis makes it worth it. If you know your cost basis in the stock from the underlying transaction you can use that. The proceeds are $64, unless you put something eye catching for the cost basis, it will never be questioned.
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