Stock spin offs

Forum|Forum|1 year ago
March 31, 2025
2 replies
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Mt broker reported on my 1099 the spin off of GE VERNOVA LLC. It was held for less that a month. Now my 1099-B is reporting these day acquired in 1b as unknown and cost basis as unknown. Box 5 as noncovered.

Box 5 apparently doesn't exist in TT. All I get is cash in lieu of and then a sale 2 months later. How do I handle this for cost basis. The system doesn't like zero. Literally 12 shares of this has ground the world to a halt.

fanfare

Employee

How is the cost basis of my GE shares affected by this distribution, and what is the cost
basis of my GE Vernova shares? GE shareholders are required to allocate the aggregate tax basis
in their GE common stock held immediately before the spin-off between their GE common stock held
immediately after the spin-off and the GE Vernova common stock received in the spin-off (including
any fractional share of GE Vernova common stock for which cash was received) in proportion to
their relative fair market values on the date of the spin-off. GE shareholders are urged to consult
their tax advisors regarding the allocation of their aggregate adjusted tax basis among shares of GE
and GE Vernova common stock.

stlucia95Author

Employee

Seems a bit much when I pay a broker to handle these things. AND I have TT Premium which should provide better guidance, for which I'm paying for to do my taxes.

fanfare

Employee

Talk to your broker. If they know your original basis, they could do it.

They are reporting to you (and IRS) that they don't know it (uncovered), in which case, you have to supply the basis and apply the fraction.

Obviously the Date Acquired of the 12 Vernova shares is the date of the spinoff.

@stlucia95

Mike9241

Turbotax is a tax program, not an investment program. Even professional tax programs do not have the ability to account for spin-offs without information inputted by the preparer from documents received from the taxpayer. You'll also note that the Form 8937, mentions that other methods can be used. That's why brokers don't do the work. They leave it to you to use either the suggested method or some other.

since it was tax-free except for the sale of fractional shares the date acquired is the same as the GE stock.