I bought 6 shares of CTRM on Robinhood on 2/10/2021, and on 5/28/2021, there was a 1:10 reverse split, which resulted in me having 0 shares. Robinhood does not report this on any statement as resulting in me having a fractional share, simply 0 shares, all value gone, no cash added, the only thing recorded was a transaction labelled as "SPR" and a recording that 6 shares were involved. I just want to know how to report this on my taxes. This is my first time doing any taxes involving stocks, I just want to know what I need to report to the IRS, and how to do that?
Thanks!
you don't report a reverse split.
Your account should show that you have 0.60 shares.
If the company cashed you out, you got a check.
if you were not cashed out. on Friday 1 share had a value of $1.21. on the NASDAQ. that means it's not worthless so no loss can be taken.
So if they cashed me out, do I report that as a sale? I found where they cashed me out, almost 2 months later I was credited for 0.6 shares, so I was cashed out, and no longer have any shares. That gets reported as a sale, correct?
Correct. If Robinhood Markets (HOOD) cashed you out then you have a sale. Your gain or loss is the difference what you received and what you paid.
If you never touched your shares, the 1:10 split does not affect your original cost, meaning if you originally paid $100 for 10 shares, the remaining 1 share after the split would have a cost basis of $100.