Stock merged/exchange

Forum|Forum|5 years ago
April 1, 2021
3 replies
20 views

Please help on figuring how to enter on Sch D. The original purchase on a stock(ex. A stock 100 sh for $10 = $1000 on 1/1/10) got merge/exchange to a (ex. B stock 20 sh on 1/1/15), the B stock 20 sh was sold on 12/1/20 for $40 = $800, how would the cost basis amount, proceeds, the purchase date, adjustment gain/loss be entered? Thanks.

JohnB5677

Level 15

Let me recap this to be sure I understand.

You purchased stock A
- on 01/01/2010.
- 100 shares for $10/share
You acquired stock B in a merger/exchange
- on 01/01/2015
- 20 shares no recorded cost value
- Sold shares 12/01/2020
- For $40/share

Was there any record of a dividend, record in your W-2 or indication of a split that would establish a cost basis for stock B?

If there is not, the only entry would be for stock B. Nothing would be recorded for stock A.

For Stock B

Purchase Date 01/01/2015
Cost Basis Zero
Proceeds (20 Shares) $800
Date of sale 12/01/2020

This will result in a $800 Long Term Capital Gain

To post a 1099-B

Income & Expenses

Scroll to Stocks, Mutual Funds, Bonds, Other
Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2020?
On the OK, what type of investments did you sell? screen, select Stock, Bonds, Mutual Funds. Then select Continue.
From here, you can import or manually enter your 1099-B.
Answer the questions about your sales. Choose to Enter sales one by one when asked.
On the Now, we'll enter one sale on your 1099-B screen, enter your info.

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Anniel1stAuthor

Level 2

Hello,

Not sure if this would make more sense.

Stock A was originally purchased for 100 sh at $10 = $1000

however, Stock A had some reorganization then was exchanged/merge to Stock A1

Now (auto sold) Stock A1(11 quantity) amount $20 added to the account(reorganization/cash in lieu) merge/exchange for Stock B (19 quantity) on 1/1/15.

Stock B does not give dividend.

I sold Stock B 20 shares on 12/1/20 for $40=$800.

would I enter cost basis $1000, proceed $800 = $200 capital loss since my original purchase back then was $1000?

Thanks in advance.