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Level 1
posted Feb 13, 2023 7:29:41 PM

Hertz Warrant Short of Long Term Gain?

I bought 100 shares of Hertz HTZ on 6/19/2020. They ended up filing for bankruptcy and then emerged on 6/30/2021. My 100 shares of HTZ were then converted over to 9 shares of Hertz HTZZ and 65 shares of Hertz Warrant HTZZW on 7/2/2021. I sold the 65 shares of Hertz Warrant HTZWW on 3/23/2022. Would this sale be considered short or long term? My 1099-B from Ally shows it as short term with $0 cost basis. However in Ally Maxit Tax Manager for Prior Year Realized Gain Loss it shows it as long term with a cost basis.

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1 Replies
Expert Alumni
Feb 14, 2023 7:42:16 AM

The sale would be considered short-term because of the stock split.  You may be able to use the stock split method to report , but it depends on the conditions of the stock acquisition