The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Capital Gain & Basis||Date: 4/10/2013 10:58 AM|
|Author: Zamboni||Number: 118355 of 119693|
In 1992, I bought 500 shares of company E for $11,500. In 2012, company M bought company E for $7,000 cash and 200 shares of E's stock worth $6,000 at time of issuance plus 300 warrants to buy E's stock for $40 any time until 2017. Stock was trading at $30 per share at time of issuance. Warrants did not start trading until issuance. I received a 1099B for the $7,000 cash but no other information was sent to IRS.
1. What gain if any should I report this year.
2. What is my basis in Company M's 200 shares.
The warrants probably have no basis. They are currently trading for $6. If I were to sell them, all the proceeds would be gain, I assume.
Any help would be appreciated.
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