I have a loss from EMC/Dell merge.
I had 75 EMC shares (long term) at time of merger. Total actual basis was $4055.
My 1099B reported:
(1) 1500 shares of EMC sold, Proceeds $1803.75, various date acquired, no cost basis.
(2) 0.360 shares of DVMT sold, proceeds $17.41, no date acquired, no cost basis.
Can you advice me what basis to use for (1) the 86.77% of shares in Section 351 exchange, no loss cannot be recognized (2) the 13.23% of shares in the redemption, loss may be recognized and (3) the partial DMVT shares sold later, loss may be recognized?
How do I input them to Turbo Tax?
Since your broker is simply reporting the total cash proceeds of $1,803.75 you can simply report a basis of $2,049.23 for a loss of $245.48. The loss represents the Redemption loss ($245.48) and the Sec 351 "break even" (no gain, no loss) of $0.
The basis you'd use against the cash if lieu for the fractional share is $86.26 for a loss of $68.85.
Your basis in the remaining 8 shares of DVMT is $2,455.99.