Discussion:1099-B Demutualization?
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Discussion Forum Index --> Tax Questions --> 1099-B Demutualization?
Hellothere (talk|edits) said: | 14 March 2007 |
| Client received a 1099-B from Amerus Group, for merger consideration for the exchange of shares. Client had no other information, such as a statement,etc.
When I researched Amerus Group, I found the following announcement on their website: "If you received shares as a result of demutualization, the IRS ruled that your basis is 0. The IRS also ruled that the demutualization qualified as a tax free reorganization. Does anybody have experience with this? How do I report this? Thanks | |
AugustaCPA (talk|edits) said: | 14 March 2007 |
| I would pick up the proceeds on Schedule D with a basis of zero. | |
| 14 March 2007 | |
| Yes - it was a demutualization. The demutualization is tax free, but when they sell the shares then it is taxable . The basis is zero and probably long term if the client had the insurance policy for more than a year | |
| 14 March 2007 | |
| Agree with both AugustaCPA and Klesher. The gain is definately long term if the policy was more than one year old. | |
Hellothere (talk|edits) said: | 14 March 2007 |
| Thank you !! | |
| 14 March 2007 | |
| I thought there was still some controversy about the basis of shares received via demutualization???? That protective claims were still necessary???? | |
Death&Taxes (talk|edits) said: | 14 March 2007 |
| You are right, Kevin; I don't think any of those cases have settled yet. | |
| 14 March 2007 | |
| I read in the paper that a court decision is expected within a few months - discussed filing a "protective" 1040x for those who paid tax using zero basis on 2003 returns. | |
CTurner555 (talk|edits) said: | 16 March 2007 |
| This means that both the 1120S and the individual shareholder returns need to be amended by 4/15 if the 1099B demutualization income was inside an SCorp then, doesn't it? Sigh.....as if there wasn't already enough to do. | |
| 21 January 2009 | |
| Discussion:Great Demutualization Info | |
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