So, Tom, my Mom is in this boat. She received MetLife shares as a result of the "demutualization" in 2000, so her cost basis is $0. The spin-off of Brighthouse last year resulted in her receipt of $48.03 due to the sale of her fractional share in Brighthouse. My mom's income is < $25,000 so she is eligible to use the free Turbo Tax "Freedom Edition" software via the IRS website to file her federal return. Questions: (1) How do I account for the $48.03 she received from the sale of the fractional share of Brighthouse using the Turbo Tax "Freedom Edition"? (2) Do I need to complete a Form 8949 and a Schedule D in the "Freedom Edition"? (3) Box 5 of her 1099-B is checked, indicating it is a "Noncovered Security". The explanation of that on the back of the 1099-B suggests that the sale of her fractional share may be a long-term transaction. Is that correct? (4) Or would this sale be considered a short-term transaction, since the 1099-B says the "Distribution Date" (which, presumably, is also her acquisition date) is 8/4/17 and the "Date sold or disposed" is 8/10/17? Thanks for any guidance you can provide.
