Question 1. I received a check with amount $43.80 on 4/1/2024. The comment on the check stated that no fractional shares of Solventum were issued. Fractional shares that would otherwise be allocated to you have been aggregated and sold by the distribution agent. A check for cash in lieu of such fractional amounts, reflecting deductionss for any taxes required to be withheld, applicable transfer taxes, and the costs and expenses of such sale and distribution, including brokers' fess and commisions, is attached.
My husband used to work for 3M and the shares were from Employee Stock Purchase Plan which he used to purchase. He stopped purchasing any shares as of September 2008. In Turbo Tax, should I select ESPP and long-term (non-covered)? It also asked how many shares of Solventum were purchased and what shares were sold. 1099-B showed quantity sold as 0.671, proceeds $43.80 and federal income tax withheld is zero. Cost basis in Box 1e is missing. How do I record this amount $43.80 and where do I find the cost basis?
Question 2: I received a broker statement (under Form 1099-B) but it has a different cash in lieu amount than the check amount $43.80 that I received on 4/1/2024. There are 24 transactions and the total on 1d proceeds is $48.33, 1e cost or other basis (b) is $30.88 and gain is $17.45. Another section of the broker statement (under long-term transactions - supplemental stock plan lot detail, no 1099-B was received) has QSP (Qualified ESPP Shares) and also has 24 transactions. Total Proceeds is $48.33, adjusted cost or other basis is $36.35 and adjusted gain is $11.98. After inputting these numbers in Turbo Tax, it showed a capital gain of $10.
How to record Solventum fractional shares from 3M Spin-off?
According to what I googled, the 3M Spin-off is supposed to be tax-free to the stockholders. So does this mean capital gain of $10 is wrong? Do I need to record the long-term transactions with adjusted gain of $11.98?
Sorry that there are so many questions within these two questions! But I am very confused. Any help will be much appreciated.
Thank you!
