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recycled_dnd OP t1_j6o7qyn wrote

Reply to comment by micha8st in Investment in Private company that was bought out, 1099-B can't determine cost basis by recycled_dnd

Thank you for your replies!

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Upset-North-2211 t1_j6o9xix wrote

I would split the investment into 2 chunks $5k each and use 1 chunk against the $7.5k cash payout. Hold the 2nd $5k as the cost basis of the received stock. The $400 payout is like a dividend, so cost basis is $0.

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