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Anne, Master Tax Preparer
Category: Tax
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Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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Received a cash-in-lieu of the fractional share of ...

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Received a cash-in-lieu of the fractional share of common stock due me as a result of a 3-for-2 stock split. The check was calculated using 1/3 of the closing price of the shares on 2-14-2007. How do I report this for tax purposes. Like a dividend? And if so what makes it certified or uncertified? The stock is Comcast. Thanks for the help! Vicki, CA
Submitted: 8 years ago.
Category: Tax
Expert:  Anne replied 8 years ago.

Hi Vtaylor13

Thank you for using justanswer. You should have recieved a reporting document regarding the payment . If you received a 1099 DIV then you would report the payment as a dividend on

<table border="0" cellspacing="0" cellpadding="1">2007 Form 1040 (ScheduleB) Interest and Ordinary Dividends

Most generally, these are reported on a 1099B as sale of the fractional share of stock and need to be reported on 2007 Form 1040 (Schedule D) Capital Gains and Losses. There should be a supplemental statement showing the cost basis in the fractional share of stock and you would pay tax on the net profit, or if it is a net loss, you will take the loss against your other income on your tax return

I hope this helps you

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