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Author: hghcpa Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: a capital gains question Date: 5/3/2000 7:31 AM
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ok, so here's the deal. my father had a couple of met life policies for a very long time. this year met life sent him a note saying they were changing the policies' fund to a stock fund. as dad didn't want the stock his only other option was to cash out.
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IIRC - Met life converted from a mutual company to a stock company. Your dad would have received stock during this exchange. He would have had the right to hold the stock or sell it. Since he sold it he has a capital gain. Again, IIRC, this will be deemed a short term gain and he will have no cost basis. So his net sales proceeds will be taxable to him. You need to fill out schedule D and the sale will be reported in the first section of that form. There is no provision to roll the proceeds to another stock and defer the gain.

Lastly, you may want to review this with a local professional if you are unsure about the treatment. Also, the company likely sent you some detailed explanations regarding the treatment of the proceeds for those who chose to sell.


Hope this helps

Pete
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