Amounts received for "cash in lieu" is almost always a small insignificant amount. There are two practical ways that you can deal with it. 1. Use a cost basis of zero and realize a capital gain for the amount of the cash in lieu. 2. Use a cash basis equal to the amount of the cash in lieu, which will result in no gain or loss. I have been told, but haven't verified, that when you receive cash in lieu, that 100% of the cost basis of the surrendered shares is applied to the whole shares of the new stock you received, which leaves the fractional shares for which you receive cash in lieu with a zero basis. Either way, the IRS isn't going to question it. I've been using a zero cost basis, it may not be the correct basis, but it's not incorrect to use it.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
