How to report 1099-B resulting from stockholder class and derivative action settlement.

[user17719008285]

I received a Form 1099-B from a stockholders class action settlement. Only info on form is LIQUIDATION, 

Date sold or disposed (Box 1c) 03/12/2025, Proceeds (Box 1d) $135.48, Cost or other basis (Box 1e) $0.00,

Turbo Tax Deluxe is asking me what type of investment did you sell, date acquired, cost basis, how did you receive this investment.

[ThomasM125 · Accepted solution]

You sold a stock(non-employee). For the date acquired, you would have to choose a date either more than one year before the sale date or one year less. That would depend on how long you held the investment from the time you acquired it until it was sold. Assuming you didn't buy the stock before you sold it, can use the sales date as listed on the form for the date acquired. The cost basis would be what you paid for it, which would be $0 if it didn't cost you anything. If you didn't provide any services or pay money to acquire the stock you can say you received it as a gift. Otherwise, say you purchased it.

[user17719008285]

Thank you so much ThomasM125 for your Tax Help! I had enough questions for my problem that I could of filled a whole sheet of paper. Then I opened up my email and there in one short paragraph was the answers to all my problems. I can't begin to tell you how relieved I was. I opened up Turbo Tax and within a few minutes following your instructions I was finished with that section. I am forever grateful for your help.