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In gifted my daughter ~4 shares of a stock that was part of a ESOP program from a past employer. In 2012 the stock was converted twice due to buyouts and as a result there was a cash distribution on the sale of a fractional share to the conversion of the most recent company.

The new company has assigned a cost basis for the shares converted and she will need to report the cash distribution for the sale of the fractional share on her state and federal tax returns.

Which form should be used to report this sale and how will she(I) compute the tax,if any, to be paid?


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