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

chocolateeyes7 — Thu, 06 Jun 2019 06:52:47 GMT

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

You treat it as purchased on the date you received it bac...

MichaelL1 — Thu, 06 Jun 2019 06:52:48 GMT

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.

topic What is mutual life insurance converted to stock via former employer considered for how I acquired stock? in Investors & landlords

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

You treat it as purchased on the date you received it bac...