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Not applicable
posted Mar 30, 2021 5:04:25 PM

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

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.

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1 Best answer
Expert Alumni
Mar 30, 2021 5:18:32 PM

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.

4 Replies
Expert Alumni
Mar 30, 2021 5:18:32 PM

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.

Level 1
May 2, 2021 3:25:26 PM

are they considered an "ordinary" gain or loss?

Expert Alumni
May 2, 2021 3:35:21 PM

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

Level 1
Oct 15, 2021 10:04:14 AM

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