A
astap726
Guest
What is the name of your state? LA
After our employer's insurance company demutualized, our insurance company's broker sent my company a check for selling its common stocks. My employer gave every employee a check equally divided to amount to the sum of our insurance company check on the day he received the check from the insurance company.
My company received a 1099-B from our insurance company's broker for the entire company's share. Each employee received a 1099-B from our company (who is not a broker) for the amount that was equally divided among employees.
I was enrolled in our insurance company plan for three years. We were not even in the plan when our insurance company demutualized--we had a new carrier by this time.
As far as my capital gain is long or short-term, does it matter if my employer gave me a check the day he received a check from our insurance company? Or does the date I enrolled in the plan determine if it is long or short term?
I called the IRS about this earlier and they said that this is long term capital gain with zero cost basis. A CPA told a fellow employee that this is a gray area, with no IRS documentation covering when a business gets the check first and then divides it among its employees. He said to put down short term capital gain, plugging in the acquired date as the date of the check and the sold date as the date of the check. He said to use the $6.89 my company passed along to me as the cost basis (the amount their broker charged them to sell the shares of common stock).
Could you please tell me what to do and point me to any documentation concerning when an EMPLOYEE GETS THE CHECK from his employer, NOT our insurance company's broker? Also we got the 1099-B from our employer, not our insurance company's broker. (I already have the info in the PUB. 1040 and 550, but it does not refer to my situation).
Thank you!!!!
After our employer's insurance company demutualized, our insurance company's broker sent my company a check for selling its common stocks. My employer gave every employee a check equally divided to amount to the sum of our insurance company check on the day he received the check from the insurance company.
My company received a 1099-B from our insurance company's broker for the entire company's share. Each employee received a 1099-B from our company (who is not a broker) for the amount that was equally divided among employees.
I was enrolled in our insurance company plan for three years. We were not even in the plan when our insurance company demutualized--we had a new carrier by this time.
As far as my capital gain is long or short-term, does it matter if my employer gave me a check the day he received a check from our insurance company? Or does the date I enrolled in the plan determine if it is long or short term?
I called the IRS about this earlier and they said that this is long term capital gain with zero cost basis. A CPA told a fellow employee that this is a gray area, with no IRS documentation covering when a business gets the check first and then divides it among its employees. He said to put down short term capital gain, plugging in the acquired date as the date of the check and the sold date as the date of the check. He said to use the $6.89 my company passed along to me as the cost basis (the amount their broker charged them to sell the shares of common stock).
Could you please tell me what to do and point me to any documentation concerning when an EMPLOYEE GETS THE CHECK from his employer, NOT our insurance company's broker? Also we got the 1099-B from our employer, not our insurance company's broker. (I already have the info in the PUB. 1040 and 550, but it does not refer to my situation).
Thank you!!!!