You can enter a basis figure if you wish.
Example: You own 227 shares with a basis of $5,000. The stock does a reverse 1 for 3 split so you "receive" 75.67 shares. But your basis is unaffected.
$5,000 / 75.67 = $66.076 and that's your basis in the entire amount of shares that were due to you because of the reverse split. But the fractional share gets purchased from you with the cash in lieu.
$66.076 x .67 shares = $44.27 and that's the basis you deduct from the cash in lieu to determine profit of loss.
Or, you can enter $0 here and pay taxes on the entire amount of the cash in lieu.
Tom Young
