Skip to main content
TurboTax
Community
TurboTax
Community
TurboTax
Community
G
Grammy13
April 13, 2023
Question

Do I need a cost basis of stock received from the demutualization of insurance company?

  • April 13, 2023
  • 1 reply
  • 0 views
I sold some shares and they are asking for it.

1 reply

D
DianeW777
April 13, 2023

Yes.  If you do not know your cost basis or if you do not have a cost basis then the amount would be zero. Be sure to select the correct holding period. If you owned the policy for more than one year as of the date of the demutualization, the gain is treated as long-term capital gain. If you owned the policy for a year or less, the gain is short-term capital gain. Refer to Internal Revenue Code section 1223(1). Tax Topic 430

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

Unlock tailored help options in your account

Create an account
TurboTax Expert Assist
TurboTax Expert

Get answers to all your tax questions

Our experts are available on-demand, no appointment needed. Get help all year long with TurboTax Expert Assist.

Terms & ConditionsAccessibility statement
Intuit
TurboTax Credit Karma QuickBooks MailChimp

©1997-2022 Intuit, Inc. All rights reserved.
Intuit, QuickBooks, QB, TurboTax, ProConnect, and Mint are registered trademarks
of Intuit Inc. Terms and conditions, features, support, pricing, and service options
subject to change without notice.

Security Certification of the TurboTax Online application has been performed by
C-Level Security.

By accessing and using this page you agree to the Terms of Use.

Accessibility

TRUSTe nResult Certified e-File C-Level Security Certification