Stock cost basis

[CharlieRP]

I have a question similar to one I saw regarding employee stock.  Some of my investments are MANAGED by JPMorgan.  The 1099-B includes 1 stock listed under "Unknown Term Gains or Loses."  The Quantity Sold is blank. The Date Acquired, Cost or Other Basis, Acquired Market Discount, Wash Sale Loss Disallowed and Gain/Loss Amount are all listed as N/A.  "Cash in Lieu" is listed as additional information.  This is not a large holding as the Proceeds Reported to IRS are only $64.33.  However, I cannot list it in Turbotax and the Smart Check will not allow me to proceed.  Although I have checked for this stock the box for "The cost basis is incorrect or missing on my 1099-B", the software will not allow be to bypass the entry for "Box 1e - Cost or other basis."  I seem to be stuck in a loop.  Any suggestions on how to proceed would be greatly appreciated!  Thanks  CharlieRP

[DavidD66]

"Cash in Lieu" occurs when there is a merger, acquisition, or reverse stock split that does split into a whole number of shares.  Instead of issuing a partial share, you are given cash instead or "in lieu"  of the partial shares.  The amounts are usually rather small (less than the price of one share of the related stock).  The way I treat them is to report the acquisition date as "Various" the cost basis as $0, and the holding period as short term, basis not reported to the IRS - Category B.    This results in the highest possible tax on the transaction, but considering the time it would take to determine the actual cost basis makes it worth it.   If you know your cost basis in the stock from the underlying transaction you can use that.  The proceeds are $64, unless you put something eye catching for the cost basis, it will never be questioned.