Cash in Lieu Supplemental Information in 1099, how to report if there?

[Anonymous]

Hello,

I am wondering how I would report a cash in lieu due to fractional shares of a stock I had if it is put in supplemental information section of the 1099 I was given from my brokerage? I've assumed that I would put it in as "(C) Short-term transactions not reported to you on Form 1099-B"in Investment Income for Stocks, Mutual Funds, Bonds, Other. Thank you in advance for your help.

[DavidD66 · Accepted solution]

Cash in lieu amounts are usually insignificant, so I recommend you simply report the payment on Form 8949, with a zero cost basis using category C.

[HJCouri5]

are they considered an "ordinary" gain or loss?

[ToddL99]

Yes, if a "short-term" gain, then it would be taxed at "ordinary income" rates.

[HJCouri5]

do I need to include the date of acquisition (which is the same as sale)?