1099-B Merger - Unclear how to report

alek · Feb 19, 2023 1:26:47 PM

My 1099-B has 1 transactions that I do not know how to enterIn the "Additional Information" section this transaction states - MERGER Transactions<UL><LI>Box 1a - Infrastructure and Energy Alternative Inc Comm stock</LI><LI>Quantity Sold - 52</LI><LI>Date Acquired - N/A</LI><LI>Date Sold or Disposed (Box 1c) - 10/11/2022</LI><LI>Proceeds/Reported to IRS (Box 1d) - $546.00</LI><LI>Cost or Other Basis - N/A</LI><LI>Accrued Market Discount - N/A</LI><LI>Wash Sale Loss Disallowed - N/A</LI><LI>Gain/Loss Amount - N/A</LI><LI>Box 6: Gross Proceeds</LI><LI>Box 5 Box Checked (Noncovered Security)</LI><LI>Box 12: Basis Not Reported to the IRS</LI><LI>Box 2: Type of Gain or Loss - Short Term or Long Term</LI></UL> I found details of when I first purchased this transaction on my account which highlights the following:<UL><LI>Date Acquired: 2/8/21 Quantity: 52</LI><LI>Cost: $19.2983</LI><LI>Date Sold: 10/10/2022</LI><LI>Price: 13.7603</LI><LI>Gain $: -287.98</LI></UL> My account has multiple Transactions associated with Reorg10/11/2022:<UL><LI>Type: Reorganziation</LI><LI>Date posted 10/11/2022</LI><LI>Amount: $38.00</LI><LI>Description: INFRASTRUCTURE AND ENERGY ALTERNATIVES INC COMMON STOCK MANDATORY REORG FEE CHARGED</LI></UL>10/11/2022<UL><LI>Type: Reorganziation</LI><LI>Date posted 10/11/2022</LI><LI>Amount: $546.00</LI><LI>Description: INFRASTRUCTURE AND ENERGY ALTERNATIVES INC COMMON STOCK CASH $10.50 & STOCK 0.0483</LI></UL>10/11/2022<UL><LI>Type: Reorganziation</LI><LI>Date posted 10/11/2022</LI><LI>Amount: $0.00</LI><LI>Description: MASTEC INC CASH $10.50 & STOCK 0.0483 SHRS RECEIVED THRU MERGER</LI></UL>10/11/2022<UL><LI>Type: Reorganziation</LI><LI>Date posted 10/11/2022</LI><LI>Amount: $0.00</LI><LI>Description: MASTEC INC CASH $10.50 & STOCK 0.0483 SHRS RECEIVED THRU MERGER</LI></UL>10/11/2022<UL><LI>Type: Reorganziation</LI><LI>Date posted 10/12/2022</LI><LI>Amount: $38.00</LI><LI>Description: REORG FEE REVERSAL</LI></UL>10/14/2022 – This transaction is listed on my 1099-B with all details to enter it and in the additional comment it states CASH IN LIEU<UL><LI>Type: Reorganziation</LI><LI>Date posted 10/14/2022</LI><LI>Amount: $33.25</LI><LI>Description: MASTEC INC CIL ON 0.51160@ 64.99981</LI></UL> I would appreciate some help on how to actually capture this transactions as part of my 1099-B or if there is another form I need to complete this information on.

I believe the way the 1099 B received by you is incorrect and this the reason for the confusion. In your 1099B, there should be 2 transactions.

First of all, the sales proceeds for the 52 shares infrastructure and Energy Alternative Inc Comm stock should be $681. This includes the $546 + 135= $681. This should be reported as one transaction. The loss on this transaction is $1004 - 681= -$323
You mention that Mastic Inc. had a net loss of $1.28. This means that if the cost basis is $34.33, then the proceeds amount should have been $33.05. This should be recorded as a separate transaction in your investment sale section of your return.

It seems like the way they reported the proceeds of the sale was your broker added $546 + 135 + 34 = $715 but the problem is if the $34.33 is cost basis, then this wouldn't be added in as proceeds. Now if you are mistaken and the $34 is proceeds, then this all makes sense.

The broker I think added two transactions into the same transaction but is trying to report all of it in a Alternative INC Comm Stock transaction and this is incorrect thus making the $287 net loss incorrect. When everything is said and done, your net loss should be $324 + 1.28= $325.28 when you report these two transactions separately.

@alek

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