Strict Standards: Non-static method vBulletinHook::fetch_hook() should not be called statically in /srv/users/serverpilot/apps/asktaxguru/public/includes/functions.php on line 5234

Strict Standards: Non-static method vBulletinHook::init() should not be called statically in /srv/users/serverpilot/apps/asktaxguru/public/includes/class_hook.php on line 114
Bank stock sale - Ask TaxGuru
 
Welcome Guest. Register Now!  



 
 
LinkBack Thread Tools
 
Old 03-17-2014, 03:42 PM
Junior Member
 
Join Date: Mar 2014
Posts: 2
Bank stock sale

Sold some bank stock when the bank sold to new company. There was a cash portion and a note portion of the sale. the cash portion was liquidated in Jan. 2013. the note portion is to be paid out over 4 years. Should I have a 2013 Form 1099-B for the cash sale or do I have to wait 4 years to determine the actual sale price? The cash sale creates a capital loss for me.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
 
Old 03-18-2014, 01:17 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by MCarter View Post
Sold some bank stock when the bank sold to new company. There was a cash portion and a note portion of the sale. the cash portion was liquidated in Jan. 2013. the note portion is to be paid out over 4 years. Should I have a 2013 Form 1099-B for the cash sale or do I have to wait 4 years to determine the actual sale price? The cash sale creates a capital loss for me.
so, I guess the bank stock you owned was acquired by merger by another company in 2013. you owned the original stock for several years. you received shares in the new bank and some cash. you received a 1099-B for the cash you received. you still own sdome of the shares in the new biz. The instructions for the 1099-B indicate the cash received needs to be reported in column d of sch D/8949. How is the gain or loss computed on this amount since you still have some of the shares? Also, what impact does this gain or loss have when you sell the shares of the new biz?Since it is a liquidation, 1099-B is correct. When stock is liquidated, it goes away. You need to determine the total value of what you received - the value of the stock in the new bizwhen you received it plus the cash.

Divide the cash by the total value of what you received. This will give you a percentage.Multiply that percentage by your cost in the original shares. This gives you the basis in the cash that was received. This is the number you include on Sch D /8949as cost. The remaining amount is your basis in the new biz stock you have.
.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Ads
 

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Capital Gains/Loss selling of bank stock MCarter Capital Gains 0 03-17-2014 03:36 PM
No tax basis for a stock sale pvonk Capital Gains 1 12-21-2013 02:04 AM
Stock Sale clrock1 Capital Gains 0 02-06-2011 11:37 PM
Capital Gains on Stock Sale from Trust canary2009 Capital Gains 0 04-02-2009 11:53 PM
stock sale 7rassel14 Income 1 02-07-2009 10:53 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.