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Financial Planning / Tax Strategies


Subject:  cash in lieu for partial shares Date:  2/7/2000  2:22 PM
Author:  aegl Number:  27660 of 127513

I have three 1099-B listings for cash in lieu for partial shares. The first two were generated because I held an odd number of shares in companies that had 3:2 splits, so the odd half share was paid in cash. The third was when the company I work for was bought, and I got 1.65 shares for each share in my ESPP.

I assume that all of these count as a "sale" of a partial share?

For the splits, I can work out the cost basis of the half share pretty easily (since they came from a single purchase), but for the ESPP ... the shares came from a sequence of purchases over the preceeding three years.
Can I choose which ESPP partial share was sold? Or is there a rule (oldest/newest)? Or must I compute the average basis of all the purchases!! If the partial share that was sold was recent, then my employer is supposed to have reported the gain on my W-2 (but I don't think that they have).

Is there a way to just say "the heck with it", and give the IRS enough to make them happy? The cash I received for this partial sale is under $20.00 ... I don't really feel like spending 2-3 hours researching this to get the amount correct to the penny.

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