TurboTaxDianeW, EA stated"The cost basis will be zero because this is normally payments made to investors who received fractional shares..."
While I'd bet that the majority of cash in lieu transactions do get reported with a $0 basis, that's most likely because most people don't understand that
a fractional share does have a reportable basis.You'll use the "Stocks, Mutual Funds, Bonds, Other" interview and tell TurboTax that you do have a 1099-B.
The cash received "in lieu" ($53.37 I assume), is reported as the
proceeds of a sale of the fractional share.
To come to the correct basis to use you divide the dollar amount of basis for all the shares received, including the fractional share. That gives you a per share basis figure. Then multiply that per share basis figure by the fraction of a share you sold, and you have your basis. Of course you're always free to report a basis of $0 and pay taxes on the entire proceeds.
Tom Young
