What is mutual life insurance converted to stock via former employer considered for how I acquired stock?

[chocolateeyes7]

I have a 1099B from sale of stock. I acquired the stock from my previous employer back in 2001. It originally was obtained by a Mutual Life Insurance conversion to stock. The original cost per share when it went public was $18.50. The cost basis is $0 from my understanding on my form and calling Computershare. My question is, Turbotax is asking me how I acquired the stock. The options are ESPP, NQSO, ISO, RS, RSU, Mutual Funds, and Bonds or other. What option do I choose? I know it could impact the amount of the stock taxed. If other, it appears it will take a big chunk out of my return. Thanks

[MichaelL1 · Accepted solution]

You treat it as purchased on the date you received it back in 2001, so it will be Long term gain.

Most de-mutualization you do have a $0 basis, and that is what yours would be unless you have information to document otherwise.

Your option is not one of the above " ESPP, NQSO, ISO, RS, RSU, Mutual Funds, and Bonds or other" so chose other, as it is a purchase.

Once you get it in the program as Long term this should minimize some of the tax impact.