Investors & landlords
Where a shareholder does not take up his right to new shares but sells those rights to a third party, the proceeds are treated as a capital distribution and constitutes a part disposal of shares.
You should just report the $10 as the sale proceeds, you can choose to use various as the purchase date and enter the appropriate date of sale. There should be no cost basis in this entry. Be sure to select the correct holding period.
- Long term is a holding period of more than one year and receives capital gain tax treatment (0%, 10%, 15%, 20% depending on your regular rate of tax)
- Short term is a holding period of one year or less and receives ordinary gain tax treatment (your regular rate)
See the image below to use a different date acquired.
