topic Cost basis for cash in lieu in Investors & landlords

Cost basis for cash in lieu

soumyadas1977 — Sun, 04 Apr 2021 16:52:53 GMT

I'd bought 100 shares of CHK and after reverse split in April 2020 (reverse stock split, at a ratio of 1-for-200) I got 0 shares and got cash in liue of fractional shares.

The 1099 B from the broker shows cost basis as 0. I'm wondering this is incorrect and the original purchase price of 100 shares is the cost basis. Is this right?

Re: Cost basis for cash in lieu

Critter-3 — Sun, 04 Apr 2021 19:00:20 GMT

If the broker doesn't have the original cost basis then you need to make the adjustment on the return.

Re: Cost basis for cash in lieu

soumyadas1977 — Sun, 04 Apr 2021 19:04:43 GMT

Thanks. Apart from making the adjustment to cost basis, do I need to file form 8937 "Report of Organizational Actions Affecting Basis of Securities."