How to report cash in lieu on Schedule D

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Subject Author Date How to report cash in lieu on Schedule D U & J Taras 04-03-2007  Re: How to report cash in lieu on Schedule D joetaxpayer 04-04-2007  Re: How to report cash in lieu on Schedule D Harlan Lunsford 04-05-2007  Re: How to report cash in lieu on Schedule D Seth Breidbart 04-09-2007  Re: How to report cash in lieu on Schedule D Dan Lanciani 04-10-2007  Re: How to report cash in lieu on Schedule D Rich Carreiro 04-10-2007  Re: How to report cash in lieu on Schedule D rsmcclain 04-09-2007
Posted by U & J Taras on April 3, 2007, 7:04 pm Please log in for more thread options I bought a stock of a company that merged with another (I have not sold it yet) and my 1099B is showing the sale of company A and proceeds of $0.02 and in another position "cash in lieu" $30.00. How do I report that on Schedule D? I transferred all the data from my broker to Microsoft Money and imported it to the TaxCut and the transaction is not showing the "cash in lieu" position. I really have no idea what to do with the $30.00. Please, help me! << ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >> Posted by joetaxpayer on April 4, 2007, 2:20 pm Please log in for more thread options U & J Taras wrote: > I bought a stock of a company that merged with another (I > have not sold it yet) and my 1099B is showing the sale of > company A and proceeds of $0.02 and in another position > "cash in lieu" $30.00. How do I report that on Schedule D? > > I transferred all the data from my broker to Microsoft Money > and imported it to the TaxCut and the transaction is not > showing the "cash in lieu" position. I really have no idea > what to do with the $30.00. You did not state the stock so I'll give a made up example; You owned 100 shares of XYZ, basis $10/share. The merger deal was 10 shares of ABC for each 9 shares of XYZ, so for 99 shares, you got 110 shares of ABC, plus $30 cash in lieu for that odd share. Your basis was $10 and it was 'sold' for $30. This pretty well describes what I just found at: http://www.fairmark.com/capgain/mergers.htm a web sight I have no relationship with, nor any financial interest in. I just googled "cash in lieu" and this was the first hit. JOE << ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >> Posted by Harlan Lunsford on April 5, 2007, 1:49 am Please log in for more thread options joetaxpayer wrote: > U & J Taras wrote: >> I bought a stock of a company that merged with another (I >> have not sold it yet) and my 1099B is showing the sale of >> company A and proceeds of $0.02 and in another position >> "cash in lieu" $30.00. How do I report that on Schedule D? >> >> I transferred all the data from my broker to Microsoft Money >> and imported it to the TaxCut and the transaction is not >> showing the "cash in lieu" position. I really have no idea >> what to do with the $30.00. > You did not state the stock so I'll give a made up example; > > You owned 100 shares of XYZ, basis $10/share. > The merger deal was 10 shares of ABC for each 9 shares of > XYZ, so for 99 shares, you got 110 shares of ABC, plus $30 > cash in lieu for that odd share. Your basis was $10 and it > was 'sold' for $30. This pretty well describes what I just > found at: http://www.fairmark.com/capgain/mergers.htm > a web sight I have no relationship with, nor any financial > interest in. I just googled "cash in lieu" and this was the > first hit. And I also have no relationship with that web site, ALTHOUGH I do know the owner of it. just today I had this case where shares were exchanged and cash in lieu of a partial share was paid to my client. The 22$ is a short term gain with bought and sold date the same and zero as cost basis. ChEAr$$, Harlan Lunsford, EA n LA << ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >> Posted by Seth Breidbart on April 9, 2007, 2:51 am Please log in for more thread options > just today I had this case where shares were exchanged and > cash in lieu of a partial share was paid to my client. The > 22$ is a short term gain with bought and sold date the same > and zero as cost basis. Why wouldn't its holding period be that of the exchanged shares, and its cost basis the cost of the appropriate amount of the latter? Seth << ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >> Posted by Dan Lanciani on April 10, 2007, 9:47 am Please log in for more thread options >> just today I had this case where shares were exchanged and >> cash in lieu of a partial share was paid to my client. The >> 22$ is a short term gain with bought and sold date the same >> and zero as cost basis. > Why wouldn't its holding period be that of the exchanged > shares, and its cost basis the cost of the appropriate > amount of the latter? That's how I used to do it; however, the last time it happened Fidelity's "for my convenience only" tax detail showed a short term gain and zero basis. I decided Fidelity might know something I didn't, so that's how I reported it. The zero basis is something that I'd actually heard of before as a simplifying option but the short term bothers me as it suggests that the holding period of the new shares might have been reset as well. This year Fidelity started (again for my convenience) reporting the basis of assets sold or redeemed during the year. They claim to take into account all OID and premium amortization of bonds, but they do not show any of the calculations. I had two muni bonds redeemed in 2006. One that I had held for quite a few years had OID yet Fidelity reported my (sub-par) basis as exactly my purchase price. It's hard to understand how I accrued none of the OID. The other bond involved a premium amortization which might be correct under the complicated new rules, but I'm beginning to wonder if I should trust Fidelity at all for such things. :) Dan Lanciani ddl@danlan.*com << ======================================================= >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2006) - All rights reserved. >> << ======================================================= >> Similar Threads Posted taxability of cash-in-lieu? April 19, 2006, 12:38 am Cash in lieu of fractional shares February 7, 2008, 5:31 pm Cash in lieu of stock basis? 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