The Cash in Lieu can be added separately. While you could report the Cash in Lieu as Other Income, it actually makes more sense in your case to report the Cash in Lieu in the Short-Term section of Schedule D with Box C selected.
- To do this in TurboTax, follow these steps:
- Inside TurboTax, in the search box, enter investment sales.
- Follow the prompts from the summary page to add more sales and enter this transaction by following the prompts.
- Answer yes, from Form 1099-B. Enter it as one sale at a time.
- Enter in the sale proceeds and cost with Box B selected, short-term, not reported.
- This is not listed on your APEX Clearing, but could have technically been in the Undetermined transactions in noncovered tax lots section. By entering it with Box B checked, this cash will be properly reported.
The cash in lieu I saw listed showed a quantity of 0.10256, and I presumed this was a fractional share and perhaps the cost basis could be increased. However, this is not going to have a tax impact on your return and it is completely fine to enter it as received without any recalculation.
You could also make a case for checking Box C, since the broker only included the Cash in Lieu as supplemental information. Either Box B or Box C is acceptable to report the transaction as not reported to the IRS. The tax impact is the same.
@TaxLess24
