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Deductions & credits
What I have always done is to treat this as a ordinary sale of a fractional share. Proceeds are obviously the cash you received. Cost basis is your cost basis after the split. I have always just entered that as a sale of .n shares of stock.
So for example
$900 basis in 9 shares ($100/share).
3:2 split means 13.5 new shares. (Basis is 900/13.5=$66.67/new share).
say you get 13 new shares and $150 as cash in lieu for the half share.
Enter in TT a sale of .5 shares of XYZ. Proceeds $150. Basis .5 x $66.67 = $33.33. Gain = $150-33.33=$116.67
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‎February 2, 2024
11:27 AM
1,802 Views