Simple. These stocks are an investment sale and the cost for you is explained below. The date acquired can be selected as 'Something other than a date', then select 'Various'. You will need to know if you have held the stock short term or long term (see holding periods below).
Holding Periods:
- Long term is a holding period of more than one year (one year plus one day) and receives capital gain tax treatment (0%, 10%, 15%, 20% depending on your regular rate of tax)
- Short term is a holding period of one year or less and receives ordinary gain tax treatment (your regular rate)
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 > then select the Jump to link
- Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2024?
- If you see Here's the info we have for these investment sales, select Add More Investments.
- Answer NO to Did you get a 1099-B or brokerage statement for these sales?
- Follow the instructions.
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