The cost basis will be zero because this is normally payments made to investors who received fractional shares as a consequence of stock splits, corporate mergers and reorganizations. For instance, as a result of a merger, an investor is entitled to receive 17.25 shares. Since the company only issues whole shares, cash payment is made for the .25 share.
You can use various as the purchase date, and the holding period is based on whether you held the stock for more than one year (long term) or one year or less (short term).
Please follow the steps below for this transaction reported to you on a Form 1099B.
- Sign into your TurboTax account (Premier will work for this transaction)
- Select Federal in the black navigation panel, left
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Search (upper right) for 1099b > Jump to 1099b
- Continue to follow the screens and make your entry.
- Click the images attached to enlarge and view for assistance.
