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1099-B question

So I had some stock holdings in an online trading account, which I really hadn't paid attention to for the past year (yeah stupid I know). I guess I'm of the buy, hold, and forget about it camp.

Now on my 1099-B, I see that I supposedly received Gross Proceeds of $1.00 from the sale of stock "ABC" on 3/27/07. I never recalled selling any stock last year.

As I track back through my statements, I see that my February statement shows I held stock "ABC, but my March statement shows I no longer hold stock "ABC". Yet I never received any trade confirmation of selling "ABC" (I get a snail mail confirmation each time I buy/sell stock). I know that "ABC" either went bankrupt or was delisted. Do I simply treat this as a regular stock transaction, with the 3/27/07 sell date? Even though I never voluntarily sold the stock?

Reply to
martin lynch
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Yes. Sometimes, a company goes out of business and buys back all of its stock, distributing its cash in the process so it's left with nothing (except an agreed-upon reserve to cover the cost of its final tax return).

Reply to
D. Stussy

Not a good way to do it. You really need to keep track of your holdings, particularly any transactions you make (buy, sell, reinvest dividends, etc.) because that information is a MUST to figure your cost basis when you finally sell the stock. Knowing your cost basis is for YOUR benefit (if you pay $50 for a stock and sell it for $55 do you want to be taxed on the $5 profit or the entire $55? because that is what the IRS will try to do if you can't prove your actual cost basis).

You probably didn't.

My guess is that ABC company merged with or was bought out by XYZ company and you received X shares of XYZ company for each share of ABC that you held with a fraction of a share left over, which was sent to you in cash.

Didn't you receive a check in the mail? You should be getting statements/information in the mail about all of this.

Is your stock held by a broker? If so, call your broker and find out. If not, where is your stock(s) being held? If held by you, have you moved and not notified the companies (ABC and others) of you new address so that you receive important information (and dividends)?

Reply to
Ernie Klein

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