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A
Anonymous
March 27, 2021

tax basis of shares received in demutualization of insurance company

  • March 27, 2021
  • 2 replies
  • 10 views

there is some court precedent for the value on the day the shares are issued but irs disagrees and says it is zero

anyone dealt with this??...how did you report???

thanks & regards

 

bob

    This topic has been closed for replies.

    2 replies

    sjrcpa
    sjrcpa
    Level 15
    March 27, 2021

    I've been using zero since IRS pronounced that.

    Although it has been many years since I've actually done it.

    The more I know the more I don’t know.
      BobKamman
      BobKamman
      Level 15
      March 27, 2021

      I explained the difference of opinion to my clients and let them decide.  

        A
        Anonymous
        March 27, 2021

        Thank you

        regards

        bob

          R
          RCBCPA
          Level 3
          March 27, 2021

          UNUM Life Insurance did this in Maine several years ago. I used 0 for cost basis.  

           

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