Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
To make a long story short:

I recently discovered that I have a fair amount of stock coming to me. It was a gift from my grandparents under an UGMA-type trust.

This stock, however, is in certificate form -- not in a brokerage. And the certificates got lost. Then the company got bought out, and all stockholders of the old company were asked to return their certificates in exchange for an equal value of stock in the buying company. However, since mine was lost, that never happened.

Finally my parents have applied for new certificates. And apparently, as soon as that happens, I am going to receive all of the back dividends that were paid since the buy-out.

So, in terms of taxes, how do I handle these dividends? Do I need to refile returns for the last several years, or should all this money just show up on my '98 return?

Also, as a second question: I need only pay capital gains taxes on gains made on the stock between the time it was given to me and the time that I actually sell it, right? (Rather than between the original purchase date back in the '40s and now...)

Thanks,
Ford42
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.