Received a 1099-DIV for a stock spin-off

[Batedog16]

I owned 500 shared of FTI which split into two companies in early 2021. I was issued 100 shares for the new company THNPY. My broker is reporting the 100 shares received as a dividend that I will be taxed on. Is this correct? 

[hbl3973]

Batedog16,

The short answer is yes.  The SEC relevant Form 8K of 2/15/2021 states:

"The Spin-off occurred by way of a pro rata dividend to the Company’s shareholders of 50.1% of Technip Energies Shares. Each of the Company’s shareholders received one Technip Energies Share for every five shares of the Company held at 5:00 p.m., New York City time, on the Record Date, and cash in lieu of any fractional Technip Energies Shares."

To calculate the dividend value you can use the average of the high (14.00) and low (13.75) or just the closing price (13.75) on the first day of trading 2/23/2021.  It is quite likely your 1099-DIV (not 1099-D) has assigned a value already and tells you where to report it.

[Batedog16]

Thank you for the information! That makes more sense.. and yes, 1099-DIV.