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I got a partial stock buyout(totally a surprise to me) for $2.15.is this reportable?

Forum|Forum|7 years ago
June 1, 2019
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these were stocks I had from a company that was bought by NOKIA,and NOKIA made the transaction to give me whole shares and not parts of shares.......(I hope that's clear)

Best answer by TomYoung

The $2.15 is "cash in lieu", which is a kind of shorthand for "we're not going to issue fractional shares of stock to you so we're buying that fractional share from you, instead."

Yes, the $2.15 is reportable as "proceeds" from a sale. You certainly can allocate some basis to that fractional share if you know how, but for $2.15 of proceeds reporting $0 in basis isn't going to result in a significant income tax blow.

Tom Young

T

TomYoungAnswer

Employee

The $2.15 is "cash in lieu", which is a kind of shorthand for "we're not going to issue fractional shares of stock to you so we're buying that fractional share from you, instead."

Yes, the $2.15 is reportable as "proceeds" from a sale. You certainly can allocate some basis to that fractional share if you know how, but for $2.15 of proceeds reporting $0 in basis isn't going to result in a significant income tax blow.

Tom Young