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How to handle reverse merger while paying tax? $4500+ loss but robinhood tax-documents completely ignored the detail instead showed it as a profit. Please help.
Response from Robinhood:
On May 26, 2020 Ritter Pharmaceuticals (RTTR) performed a 1 for 25reverse split and changed its ticker symbol to QLGN (Qualigen). This means shareholders will now hold 1 share of QLGN for every 25 shares of RTTR previously held. Fractional shares will be paid as cash in lieu. Additionally, shareholders will receive a contingent value right (CVR),which pays additional cash if the company hits certain milestones.
You can use your Robinhood brokerage account statements as evidence of this corporate action for tax purposes, but please check with a tax advisor to confirm which form to use.
On May 26, 2020 Ritter Pharmaceuticals (RTTR) performed a 1 for 25reverse split and changed its ticker symbol to QLGN (Qualigen). This means shareholders will now hold 1 share of QLGN for every 25 shares of RTTR previously held. Fractional shares will be paid as cash in lieu. Additionally, shareholders will receive a contingent value right (CVR),which pays additional cash if the company hits certain milestones.
You can use your Robinhood brokerage account statements as evidence of this corporate action for tax purposes, but please check with a tax advisor to confirm which form to use.
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‎October 1, 2022
1:50 PM