Reporting sale of shares of delisted common stock

[thomasrusch1]

stock was issued from a life insurance company (I believe the term is demutualization), then sold in 2016. Proceeds were sent to me. Received a 1099B for this, but it is unclear how I enter this information in Turbo Tax.

[TomYoung · Accepted solution]

The IRS takes the position that your basis in the shares received is $0.  This issue has been litigated in the courts with conflicting results, but the IRS has not changed its position.

https://www.irs.gov/taxtopics/tc430.html

You can claim your trade is long term or short term depending on how long you've owned your policy as discussed in the above link.

Tom Young

[thomasrusch1]

Turbo Tax then tells me to finish reporting the sale following the mailing instruction which say "Taxpayer must mail in a statement with more details". A 1099B has already been sent to the IRS. What statement?

[thomasrusch1]

I think I now get it. There is a supplemental info page attached to the 1099B. That page needs to be mailed to the IRS with form 8453. The supplemental page gives more info on the sale.