How is the income shown on Form 1099 B representing cash received in lieu of fractional shares reported on Form 1040?
This is dividend income that is reported on Schedule B with any other interest and dividend income received during the year. Any confusion on the treatment of this dividend is understandable. The origination of this income comes from owning stock of a company that has declared a stock dividend, verses a cash dividend. In some cases, companies do not want to bother with all of the calculations and allocations of fractional shares, so they give cash instead. This cash is a taxable dividend even if the fractional shares received escaped tax.
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- How is the income shown on Form 1099 B representing cash received in lieu of fractional shares reported on Form 1040?
- What average per share price was used to determine the cash I received in lieu of fractional shares?
