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My employer's stock had a spin-off in 2000. I received a number of shares of the new company as well as a check for the fractional shares.

I know I need to report this income on Schedule D.

How would I determine whether or not this is short-term or long-term?

Most of the stock that I owned was in my company's stock purchase plan, which I have been purchasing quarterly for several years. Do I need to split the gain into two components; one for the portion of the cash-in-lieu corresponding to shares that I had purchased in the year prior to the spinoff and one for the shares prior to a year?

Can I just simplify all of this and report it as a short-term gain with a zero basis? I wouldn't think the IRS would object to this approach as I am guaranteed in this case to pay at least as much tax as I actually owe. We're only talking about $80 in net proceeds here, so it's not that big of a deal.

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