Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
pbarnier
New Member

1099-b related to stock exchange from merger ... (stock only, no cash) is it taxable ?

received a 1099-B showing a sell of stock as a result of a merger  . (Alcatel-Lucent to Nokia) non covered security is checked , basis not reported , cost/basis box empty ..  I suspect this is just the conversion for each of my ALU shares exchanged for 0.55 shares of Nokia .. when I enter this in Turbotax it shows an additional tax liability ... I thought share exchanges (without cash) during merger werent taxable .. do I need to report that 1099-B (i think so) what adjustments do I need to make to get the proper taxation ...


1 Reply
TomYoung
Level 13

1099-b related to stock exchange from merger ... (stock only, no cash) is it taxable ?

1099-B's report "sales" so you do need to report this sale.  The basis figure will come from your own records since the security sold is noncovered.  It's "as if" you sold the Alcatel Lucent stock for cash and then immediately reinvested the cash in the Nokia stock.

Tom Young

Dynamic AdsDynamic Ads
Privacy Settings
v