I am getting ready to sell common stock in MetLife and Brighthouse financial. This stock was acquired when Metlife Insurance demutualized in the year 2000. According to an article titled "Tax Tips: Demutualized Insurance Companies", the stock basis should be $14.25 per share. Read the article at: https://www.thestreet.com/story/12805404/tax-tips-demutalized-insurance-companies.html
According to Intuit, "the spinoff of Brighthouse was a tax free spinoff and when a company is spun out of another company in a tax free spin off then you allocate your basis in the original stock between your original holdings and your new holdings in proportion to their values immediately after the spin off. The recommended percentage allocation is in this case is 10.36735%, so multiply 10.36535% times your basis in MetLife and that's your basis in all the Brighthouse stock you received. To calculate the basis of the fractional share you sold the equation is: (10.3635% x basis in MetLife) divided by (ALL shares - including fraction - received) times (fraction of share sold). Further, when a company is spun out of another company in a tax tree spin off then the holding period from the "old" stock carries over to the "new" stock, so your holding period also dates back to the year 2000. Reference: https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/what-is-the-cost-basi...
