I worked for a company that had an ISO. When I left last year I exercised the number of options that had vested. Within 90 days thereafter, the company exercised a right in the stock option plan to repurchase all of my shares.
The repurchase price was 5 times the exercise price, which I meant I had a short-term capital gain.
The company sent me a 1099-DIV, listing the FULL proceeds of the repurchase at "cash liquidation distributions". Is that incorrect? Should the company have sent me a 1099-B instead? If that is the case, do I simply ask the company to send me a 1099-B instead?
This wouldn't have been an issue if the 1099-DIV had listed the net proceeds, given that there is likely no difference in the tax treatment between a distribution and a short-term capital gain, but with the 1099-DIV, I have no way to reduce the income using the basis.
