1099B shows stock proceeds as a sale, not merger

[Rich_Kok]

I owned shares of stck A, that was acquired by company stock B.

I received my 1099B.  It shows...

Cash in Lieu (no question here as it was for fractional shares)

It showed short-term transactions of stock A - as if stock A was sold and had cash proceeds.

It also showed long-term transactions of stock A - again as if stock A was sold and had cash proceeds.

Actual situation was I ended up with cash in lieu (~$5) and mostly stock in company B.  How t do I handle this in turbo tax, as, aside from "cash in lieu", the rest is not taxable?

[JohnB5677 · Accepted solution]

It may not seem like you sold stock A, but in fact you did.  When Stock B acquired stock A they bought it, and they re-issued you new shares of stock B.

The basis of all of the shares of stock B that you have is what you sold all of Stock A for. 

What you will have to determine is how much you originally paid for stock A.  This will become your stock basis that can be deducted from the sales proceeds.