1099-b Cash in lieu for 0 shares

george.hetrick · ‎March 10, 2025

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?

DavidD66

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.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

DavidD66

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.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

george.hetrick

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

Expert does your taxes

Do it yourself

Resources

Support

1099-b Cash in lieu for 0 shares