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OK. I am almost done figuring out my Consolidated 1099 from Etrade. (And thanks for your help on my previous questions!) Even though my CPA probably understands everything on my 1099 statement, I always want to understand it myself.

So...... We own Apple stock. We have owned it for years and have never sold any of it. I have the dividends reinvesting to buy more shares of the stock. Under a section called "Long Term capital Gains (or losses)," there is a line called "Box E (basis not reported to IRS)." On this line is the figure of $121.44. It shows proceeds of $129.52, and Cost Basis of $8.08 (subtract those and you get the $121.44) It shows this amount as a gain. A couple of pages later, it shows the $121.44 and next to it it says "Cash in Lieu." It shows the Apple stock symbol, and the quantity SOLD as 0.99604. It shows they were sold on 9/3/2020. I am assuming that this date is probably a date of when dividends were paid.

My wild guess is that because our dividends are being reinvested in additional shares, and the dividends paid to us are not enough to buy exactly a certain amount of additional shares, this is some kind of overage(?)... or underage? Just wondering if someone here can explain a little more of what this is? And I guess they don't allow the misc. amount to float into the next year or something??

I know this amount is insignificant with my taxes, but I just like to understand the things on my 1099 statement. Thank you tax gurus for your help.

-Footsox
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"Cash in Lieu." It shows the Apple stock symbol, and the quantity SOLD as 0.99604. It shows they were sold on 9/3/2020.

Apple split 4:1 8/31/2020. During a split, you never (at least in my experience) receive fractional shares. Instead you're paid cash in lieu of any fractional shares. That cash is treated as if you received the fractional shares then immediately sold the same number of shares.

Brian
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Brian ! Thank you so much. That answers that! I was thinking it had something to do with the fractional shares and dividends being paid, and instead it was the stock split and fractional shares with the split. Thanks for posting the answer. You get a gold star.... or an ice cream cone... or a Lamborghini. :-)

-Footsox
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