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Sale of Stock Rights

Botch
Level 1

My client received a1099-B for sale of stock rights without any cost bases. Contacted AST who did not have an answer. How do I determine the cost bases?

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8 Comments 8
itonewbie
Level 15

What kind of stock right is that?  Employer stock options (which are normally not transferrable) or are these puts and calls or something else?

What in the world is AST?

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Still an AllStar
poolcleaner
Level 9

American Stock and Transfer.  I believe they are a transfer agent.

sjrcpa
Level 15

Ask the client how he got them. Have him dig up the paperwork.


Ex-AllStar
Botch
Level 1

In connection with a merger of GGP with Brookfield Property REIT, each share of common stock of issurer was converted into the right to receive 32 cents a share. AST is the American Stock Transfer. They issued the 1099-B

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Botch
Level 1

Yes

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itonewbie
Level 15

Your client should have been given material on the merger, the conversion to the new stock, and impact on cost basis .  Like my dear friends suggested, you need to have your client dig that up (or you can spend time scouring the Internet, which may have that archived somewhere).

But you mentioned that what your client sold is stock rights.  You still haven't explained what kind of stock rights those are.

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Still an AllStar
Botch
Level 1

I received a FAQ from the client on the merger and the form 8937 from the company's website but the cost basis is not clear or the type of right. I will ask the client to follow up on this. Thanks!

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sjrcpa
Level 15

The info to perform the calculations is frequently on the company's website under Investor Relations.


Ex-AllStar
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