Basics of Investing

Question: Reporting stock awarded by company and figure cost?

A previous employer awarded employees stock shares in a private company and showed the value as income (rounded up several times to tax purposes). The company has since been reorganized and sold with the stocks being placed in escrow until all financial business was concluded. Mellon investment has now made disbursements on the remaining value of the shares, with gross procees being reported IRS. How do I report this disbursement and the associated loss based on the original value reported as income vs. the value of the disbursement which is almost nothing. Thank you for any help offered!

Answer: Your cost or basis is the amount shown as income. The net proceeds (after selling costs) minus this cost amount is your gain or loss.

BoNY Mellon To Provide ETF Services – April 16

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