1099-B Merger - Unclear how to report

[alek]

My 1099-B has 1 transactions that I do not know how to enter

In the "Additional Information" section this transaction states - MERGER

Transactions

• Box 1a - Infrastructure and Energy Alternative Inc Comm stock
• Quantity Sold - 52
• Date Acquired - N/A
• Date Sold or Disposed (Box 1c) - 10/11/2022
• Proceeds/Reported to IRS (Box 1d) - $546.00
• Cost or Other Basis - N/A
• Accrued Market Discount - N/A
• Wash Sale Loss Disallowed - N/A
• Gain/Loss Amount - N/A
• Box 6: Gross Proceeds
• Box 5 Box Checked (Noncovered Security)
• Box 12: Basis Not Reported to the IRS
• Box 2: Type of Gain or Loss - Short Term or Long Term

I found details of when I first purchased this transaction on my account which highlights the following:

• Date Acquired: 2/8/21
  Quantity: 52
• Cost: $19.2983
• Date Sold: 10/10/2022
• Price: 13.7603
• Gain $: -287.98

My account has multiple Transactions associated with Reorg

10/11/2022:

• Type: Reorganziation
• Date posted 10/11/2022
• Amount: $38.00
• Description: INFRASTRUCTURE AND ENERGY ALTERNATIVES INC COMMON STOCK MANDATORY REORG FEE CHARGED

10/11/2022

• Type: Reorganziation
• Date posted 10/11/2022
• Amount: $546.00
• Description: INFRASTRUCTURE AND ENERGY ALTERNATIVES INC COMMON STOCK CASH $10.50 & STOCK 0.0483

10/11/2022

• Type: Reorganziation
• Date posted 10/11/2022
• Amount: $0.00
• Description: MASTEC INC CASH $10.50 & STOCK 0.0483 SHRS RECEIVED THRU MERGER

10/11/2022

• Type: Reorganziation
• Date posted 10/11/2022
• Amount: $0.00
• Description: MASTEC INC CASH $10.50 & STOCK 0.0483 SHRS RECEIVED THRU MERGER

10/11/2022

• Type: Reorganziation
• Date posted 10/12/2022
• Amount: $38.00
• Description: REORG FEE REVERSAL

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

• Type: Reorganziation
• Date posted 10/14/2022
• Amount: $33.25
• Description: MASTEC INC CIL ON 0.51160@ 64.99981

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.

[PattiF]

From @DavidD66:

Cash in lieu amounts are usually insignificant, so I recommend you simply report the payment on Form 8949, with a zero cost basis using category C.

This would be a long-term gain based on the dates that you have provided.

[alek]

Wouldn’t that show the as a gain?

Based on what I paid and what was cashed out post merger is at a loss, not a gain.

[JulieS]

Yes, if you enter $0 as your basis on all of these transactions, the entire proceeds would be a gain. 

For your first transaction, go ahead and insert the information about the date acquired and the price paid. This transaction will show a loss.

The last transaction should be reported with a basis of $0. You should have actually received this amount. This will show a small gain.

I am assuming that the multiple "Transactions associated with Reorg" are not actually on your 1099-B, but rather on a statement providing more details. If that is the case, you can disregard them. 

[alek]

Correct, the transactions under “Transactions associated with Reorg” are not on the 1099-B, I provided this information because I was not sure if it was useful or relevant.

This transaction, is not listed on the 1099-B

• Date Acquired: 2/8/21
  Quantity: 52
• Cost: $19.2983
• Date Sold: 10/10/2022
• Price: 13.7603
• Gain $: -287.98

Only these two are on the 1099-B:

1. Merger Transaction 

2. MASTEC INC Transaction 

Do I enter the transaction that isn’t listed on the 1099-B? 
What information should I enter for the merger transaction?

[GeorgeM777]

Yes, enter the transaction that is missing from your 1099-B.  It appears that you have everything you need for this transaction, i.e. you have the quantity, basis, sales price, dates.  Thus, this missing transaction appears to be straightforward.

The merger transaction is much less clear.  You have a date sold, a quantity, and a negative proceeds amount reflecting a loss.  However, there is no basis, or date purchased.   Let's follow the advice from @JulieS, and report what you have.  For the date purchased, you might consider "various" if TurboTax requires that you enter a date.  

@alek 

[alek]

I just want to make sure I under correctly, even though the transaction is not listed on the 1099-b provided by E-trade I can still enter it on my taxes?

With regards to the incomplete transaction - It's reflecting as positive proceeds, not negative (please reference the photo). I'm I understanding the guidance correctly that I should proceed with an incomplete transaction?

[DianeW777]

Yes, you can certainly list a transaction that was carried out in 2022.  Keep in mind the trade date is what is used so if you are close to the end of the year the trade date may occur in 2023 and dictates when the sale is to be reported. 

You must enter a date acquired (Various will work as pointed out by our Tax Expert @GeorgeM777, if you don't have one date).  

• Based on your information about the transaction not on Form 1099-B:
  • Selling Price: 52SH x $13.7603 = $715.54
  • Cost: 52SH x $19.2983 = $1003.51
  • Loss: 715.54 - 1003.51 = ($287.97)
  • Select the holding period
  • This will complete your transaction - You must enter all the required fields.

Long term is a holding period of more than one year and receives capital gain tax treatment (0%, 10%, 15%, 20% depending on your regular rate of tax)

Short term is a holding period of one year or less and receives ordinary gain tax treatment (your regular rate)

@alek 

[alek]

I understand how to enter the transaction that isn't 1099-B, but I am still confused on how to enter the incomplete transcation.

For the incomplete transaction if I enter a cost basis of $0 then it would appear as though I made a $500+ profit, which is not accurate as I actually lost $287 on this particular transaction due to the merger.

[Critter-3]

You need to enter the missing info that the broker didn't have ... that is how you complete the entry of this sale. 

[alek]

I am sorry but that answer does not make sense

[DaveF1006]

First of all, here is how you will report the information on you 1099 B sale.  

1. Go to federal>wages and income>investment income>stocks, bonds, other
2. Enter the description as 52 shares infrastructure and Energy Alternative Inc Comm stock
3. Date acquired 02/08/21
4. Date sold 10/11/2022
5. Sales proceeds $546
6. Cost or other basis $1005.  This is obtained by multiplying 52 (number of shares) by 19.2983. 
7. Under sales category, you will pick the drop down that says Long term not covered as this would indicate that the basis was reported on the 1099B but not to the IRS.
8. The remainder of the information to posted is not relevant to your tax return.

Now after reporting this, you net loss should be $459. Your 1099B mentions $288 because the cost of the shares was 52 X 13.7603=716  Thus your loss under this reporting is $288 (rounded off).

 I am not sure how your broker reached the sale proceed amount of $546 unless there were expenses of the merger that  reduced the actual proceed amount reported of $716. Those details may be included in the supplementary disclosure statement included with your 1099B composite.

Let us know if this helps.

@alek 

[alek]

Here is the information that they shared with me:

• The transaction of 52 shares was sold on 10/10/2022 and the proceeds of this sell were $715.53 (netting me a -287.98, Total Cost to purchase the shares was $1,0003.51)
  • The $715.53 proceeds were used as following:
    • Mastic inc - Sold .5sh at a cost basis of 34.53 (netting a $1.28 loss as Chas in Lieu)
    • Infrastructure and Energy Alternative Inc Comm stock - Sold proceeds of $546.00 (This is the transaction missing the date acquired and cost basis info)
      
    • Issued two 2 shares valued at total value of $135

@DaveF1006does the above info help with how this should be reported?

[DaveF1006]

For the energy Alternative INC Comm Stock, the cost basis should be $1004 unless i'm missing something. in this case $1004-546= $458 should be your loss. Now, he two shares valued at $135, were these resold as well or do you still own them? 

[alek]

@DaveF1006I still own the shares that are valued at $135

Is it correct to report a loss of $458 when the overall transaction netted a loss of 287.98? Wouldn't I be claiming a higher loss?