Message Font: Serif | Sans-Serif
No. of Recommendations: 0
* * * * * Warning: long (and maybe confusing) post * * * * *

Some years ago I got some shares in an insurance company because of a policy.

Some years later, the insurance company became a part of AXA Financial. In December of 2000, AXA became part of a French company -- AXA ADR.

For each share of AXF, I got a fractional share of AXA ADR and some cash which went into the cash sweep account (or whatever it's called). This amount was listed on the brokerage 1099, and will go on Schedule D after I do my best to figure the cost basis. No real problem here; I'm mentioning it as background.

Last week, however, I received a corrected 1099 showing an additional "transaction" listed: an amount for the ADR shares which seems to correspond to FMV of those shares. That amount was NEVER listed on either the December or January statements, and February's hasn't happened yet. In the past, I've always been able to match the numbers on the 1099s to those on the monthly statements.

Whenever there's been money as a result of a merger (or whatever), it shows up on the statement and goes to "cash." This time, however, that second amount (from the corrected 1099) is nowhere in my account.

When I questioned the broker, after a while he said it was like a stock option where I was getting the value up front and would use that figure as my cost basis if I sell the ADR shares.

Now, I don't mind (well, not TOO much, anyway) paying tax on "gross proceeds" (as they call it), but this seems a little unusual to me. If it were an American company, I'd call investor relations, but I'm not calling France.

Anyone else ever had to deal with something like this? Am I nuts for even questioning it? Any thoughts or advice?

Thanks much!

~~ Alison
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.