Question

fractional shares

Forum|Forum|3 years ago
April 3, 2023
1 reply
0 views

Computershare just told me that I don't have to put payments less than $20 received for fractional shares after a spin off on my taxes. Is that true?

A

AnnetteB6

No, to file an accurate and complete tax return you are required to report all of your worldwide income on your return.

The cash that you received will be reported as a transaction in the Investment Income section of your return. It will look like a sale of stock as far as the details needed to enter the information.

Take a look at the following information provided by Expert DianeW777 for details about how to report this on your return:

Reporting the sale of fractional shares after spinoff

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

S

Sandy88Author

Thank you for your response. I have a few more questions but let me give a little background first. The original company's stock was purchased through an employee plan slowly over about 30 years. That 30 year period started over 50 years ago. The company's stock has split multiple times, has been split into different companies and one of those companies was reacquired and this year, the company merged resulting in this spin off and fractional share distribution. When turbo tax asks for date acquired, are they asking for the date of the original stock or of the fractional shares? If it is the original stock, can I just enter various? For the cost basis, can I just enter $0 since it will not be possible to figure the cost basis of the original stock before taxes are due? And finally for the holding period, is the for the fractional shares which would be short term, or for the original stock which would be long term? I did not receive a 1099B since the dollar amount was so small, so the only information I have been able to get is just the amount on the check I received. Thank you for your help.

S

Sandy88Author

And one more question that I have after reading other posts. For description, do I put Cash in lieu of fractional shares, or do I put the company that produced the fractional shares? Thank you.