How to Report Cash in Lieu of Fractional Shares (Box 9-1099-DIV)
- The IRS considers cash for a fractional share to be money received as the result of a stock sale.
- This transaction must be reported on IRS tax form Schedule D Capital Gains and Losses.
- The date of the sale (when cash was received) and the date of the original stock purchase is needed to complete the tax form.
Tax Basis Example: Assume a shareholder has an aggregate $100 basis in 50 shares of ABC stock ($2 per share), and the fair market value of one share of ABC stock is $66.65. Following the ABC Merger, the shareholder should have an aggregate $100 basis in 64.1 shares of ABC stock (50 shares x 1.2820, or $1.56 per share), and should be treated as having sold 0.1 shares of ABC stock with a tax basis of $0.156 ($1.56 x 0.1 shares) for $6.67 ($66.65 per share fair market value x 0.1 fractional shares).
Once you have your information you will complete the entry in TurboTax using the following steps.
- Open (continue) your return if it isn't already open.
- In TurboTax, search (upper right) > Type 1099B Press enter > Click the Jump to link
- Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2025?
- If you see Here's the info we have for these investment sales, select Add More Sales.
- Answer NO to Did you get a 1099-B or brokerage statement for these sales? or Select Other sales
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