Form 1099-B Shares of a Mutual Insurance Company which Demutualizes by issuing shares and becomes a publicly-traded company.
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CURRENT IRS POSITION FOR 2018 TY in 2019:
Cost Basis = Zero Acquisition Date: Date of Policy Purchase [therefore usually L/T]
Please see the attached documents which lead you through the history of the relevant IRS claims as to Cost Basis and Date of acquisition of such shares, and the relevant and definitive case law which established over time and many court rulings what should be reported as Cost Basis.
CURRENT IRS POSITION FOR 2018 TY in 2019:Cost Basis = Zero Acquisition Date: Date of Policy Purchase [therefore usually L/T]
If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67
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