My ESPP shares of Infinity IPCC got
converted to cash and stock due to a merger with Kemper (KMPR). Each IPCC share
was converted to $49.58 cash and 1.2332 shares of KMPR. I got two 1099-Bs; one
for the cash portion and the other for the stock which I have not sold. When
reporting the cash segment using the Guided portion, it seems to show that I
have incurred a loss and therefore boosts my returns. This is because the stock
transaction in the other 1099-B shows the stock portion which I'm unsure if I
should report given that I have not sold them. The second 1099-B form states
that the "proceeds" have been reported to the IRS and shows as
a "Non-covered" security. I'm wondering if I should book the cash
transaction as a loss for this year and set the cost basis of the stock that I
continue to own at $0 to compensate for the loss taken and pay the tax later
when I actually sell the converted stock.
