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Old 03-17-2014, 03:42 PM
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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.



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Old 03-18-2014, 01:17 PM
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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.
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