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March 31, 2021
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Cash in Lieu Supplemental Information in 1099, how to report if there?

  • March 31, 2021
  • 1 reply
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Hello,

 

I am wondering how I would report a cash in lieu due to fractional shares of a stock I had if it is put in supplemental information section of the 1099 I was given from my brokerage? I've assumed that I would put it in as "(C) Short-term transactions not reported to you on Form 1099-B"in Investment Income for Stocks, Mutual Funds, Bonds, Other. Thank you in advance for your help.

Best answer by DavidD66

Cash in lieu amounts are usually insignificant, so I recommend you simply report the payment on Form 8949, with a zero cost basis using category C.

1 reply

DavidD66Answer
Level 15
March 31, 2021

Cash in lieu amounts are usually insignificant, so I recommend you simply report the payment on Form 8949, with a zero cost basis using category C.

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Level 2
May 2, 2021

are they considered an "ordinary" gain or loss?

Level 13
May 2, 2021

Yes, if a "short-term" gain, then it would be taxed at "ordinary income" rates.