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?Every merger/takeover/spinoff has its own tax treatment, which you should find in the paperwork you received. If you can't find it, probably some Fool has posted the information on the company's board. You can go there by typing its ticker in the box at the lower left. If all else fails, contact investor relations.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.IRS will certainly not object if you take this approach to the cash in lieu payment. You're still going to have to do the basis allocation, though, so you might as well go ahead and do it now.TMF ExROPhil Marti
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