reporting capital gains

Forum|Forum|3 years ago
March 19, 2023
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1099b shows date of sale of stocks and proceeds. but does not show date acquired and cost basis. Also, box 5 states non-covered and X (unknown holding period). Problem is I bought company A years ago and 3 years(2019) ago they were acquired by another company. This company gave me x amount of stock in the new company. Last year(2022) I sold stocks of the new company three different times. Question is what date to use for when the stock was acquired and the cost of the stock.

JohnB5677

If I understand this correctly.

You bought stock in Company A.
It was acquired by another company (Company B).
Company A no longer exists, but you got stock for Company B.

To calculate cost basis.

The total cost of the Company B stock is what you paid for Company A.
To get the Company B cost per share divide the total purchase price of Company A by the shares in Company B.

The sale of shares of Company B will have the per share value calculated above compared to the proceeds on your 1099-B.

The date acquired will be the purchase date of Company A

In the Sales Section of the entry screen select Unknown term basis not reported to the IRS