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Stephen G.
Stephen G., Sr Financial Expert
Category: Finance
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Experience:  Extensive Experience with Tax, Financial & Estate Issues
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I received a 1099B from York Securities, the firm that

Customer Question

I received a 1099B from York Securities, the firm that handles my stocks. Under Disposition Transactions it shows "MERGER". Under Quantity it shows 800. Under Date Sold it shows 01/27/2015. Under Proceeds it shows $61,500 and Cost Basis shows zero. It is "Noncovered" and the basis was not reported to the IRS. I have no clue as to how to deal with this, nor did the person I spoke to at York. How am I to proceed with dealing with this on my 2015 taxes?
Submitted: 9 months ago.
Category: Finance
Expert:  Stephen G. replied 9 months ago.

Well, you'll have to look up the transaction to see what the merger was all about.

You should have received information on the merger & how to account for the transaction, but that would have been over a year ago now. You may have tossed it or if you keep files on the securities you own, possibly you placed the material with that information.

I can help you if you wish, but you will have to track down some information on the securities that were merged and what the cost basis was. If this shows gross proceeds of $61,500., you may have some taxes to pay.

You can scan what you have and send it along of you can start off by giving me the name of the securities involved and any other information you have. You'll probably have to track down your January, 2015 Securities Statement which may have more information.

Do you prepare your own tax return or do you use a Tax Preparer or a CPA or EA?

Customer: replied 9 months ago.
The description is "MEDTRONIC INC COM N/C EFF 1/27/15 1 OLD/1 NEW CU G5960L 103 M". I have no records of being notified by York of a merger. I do have records of forwarding 5 Medtronic stock certificates. totaling 800 shares to York on 8/26/2009. When you say "the securities that were merged" how is one to know that? Thank you .
Expert:  Stephen G. replied 9 months ago.

So, you should be holding 800 shares of CU or perhaps they were sold in you have a 1099B?

I've found the Medtronic SEC filing & I'm checking it out;

Does the 1099B show that you sold 800 shares of CU for $61,500?

Expert:  Stephen G. replied 9 months ago.

For Medtronic, Inc. shareholders, the structure of the transaction required the exchange of your Medtronic, Inc. common stock for new Medtronic plc ordinary shares, as well as the payment of cash in lieu of fractional Medtronic plc ordinary shares (the discussion throughout this document generally assumes you do not hold fractional shares; see question 5 under “Share Exchange” above, and question 19 below, for more information on fractional shares). Accordingly, for U.S. shareholders that held common stock in Medtronic, Inc. at the time of the closing, this will be considered a taxable transaction for U.S. federal income tax purposes.

Expert:  Stephen G. replied 9 months ago.

For you, the exchange was for old & new Medtronic. Since it involved a merger with an Irish Company, the transaction is taxable for US Shareholders.

So, you must determine what your tax basis was in the old Medtronic that was in your Securities Account before the merger with Covidien.

Next, we have to determine what you are still holding in the Account; ie if you still have 800 shares of the new Medtronic.

Then I can tell you want needs to be reported.

Expert:  Stephen G. replied 9 months ago.

Do you have any additional follow-up questions?

If not, please remember to rate my response as that is the only way we receive credit for our work.

Thanks very much,

Steve G.