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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: Spinoff 1099? Date: 3/7/2012 1:02 AM
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I own stock in a company that spun off a portion of the corporation to create a new corporation. I received shares in the new corporation plus some cash for fractional share. Should I have received a 1099B for this transaction? Is there a dollar value under which the broker is not required to issue a 1099?
I did not receive any tax forms regarding this transaction. The cost basis for the fractional share and the amount received were both less than $10.


Most brokers do a poor job of reporting cash-in-lieu, often reporting it as a liquidating dividend and not a capital transaction. There is a minimum dollar amount for (broker) reporting of these transactions, but I can't remember if it's $10 or $20.

Either way, you're responsible for reporting the income (gain or loss) on your tax return.

Ira
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