AT&T/WBD spinoff -- reporting fractional shares payout in TurboTax

[KenTheWhip]

My wife inherited two shares of AT&T stock (T) on July 29 2004 with a cost basis of 19.25 and has held onto them since for sentimental reasons.

At End of Day on April 8 2022, the AT&T stock split into AT&T and Spinco stock, and each share of Spinco was converted to 0.241917 Warner Brothers Discovery (WBD). Since that came to 0.48 shares WBD, Computershare sent my wife a check for $11.53 instead of fractional shares. She received no 1099-B or other form, but just the check with a one sentence description of the transaction.

I used the AT&T worksheet here, that shows the post-close "aggregate basis" of the 0.48 fractional WBD shares is $9.04 and of the 2 AT&T shares is $29.46.

1. Does that mean the realized capital gains is $11.53 - $9.04 = $2.49?

2. How do I tell TurboTax what happened here? We don't have a 1099-B to enter field by field.

3. Do we need to use the $29.46 as the cost basis for any future transactions involving the AT&T stock?

Thanks!

[hbl3973]

KenTheWhip,

Congratulations!  You have done everything correctly and came the the correct conclusions.  For the sale of the fractional share, simply enter it manually as a Box F transaction with the dates, cost and sales amounts.  Done.  I have had dozens of such cash-in-lieu payments over the years, including AT&T.