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Level 3
posted Mar 10, 2025 6:41:16 PM

1099-b Cash in lieu for 0 shares

My 1099-b shows a couple transactions with a Quantity of 0, Cost basis of 0, and a positive number for Proceeds and Gain (both the same).

 

Turbotax objects to the basis of 0, and doesn't accept the form. How should I handle this?

0 2 667
1 Best answer
Expert Alumni
Mar 10, 2025 8:18:49 PM

Cash in lieu usually occurs when a merger, acquisition, or reverse stock split.  Instead of issuing partial shares you get "cash in lieu".  The amounts are usually small.  I usually use a cost basis of zero, but if the program won't allow you to use $0.00 you will have to use something else.  You can try $1, or you could use the same amount as the proceeds.  Or you could determine what your actual cost basis is and use that.  

2 Replies
Expert Alumni
Mar 10, 2025 8:18:49 PM

Cash in lieu usually occurs when a merger, acquisition, or reverse stock split.  Instead of issuing partial shares you get "cash in lieu".  The amounts are usually small.  I usually use a cost basis of zero, but if the program won't allow you to use $0.00 you will have to use something else.  You can try $1, or you could use the same amount as the proceeds.  Or you could determine what your actual cost basis is and use that.  

Level 3
Mar 11, 2025 6:28:40 AM

Changing the basis to $0.01 seems to have worked. Thanks.