Reporting Capital Gain for Stock Sale that Contains Several Lots

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  • #4873
    haroldml
    Participant

    I received 51 shares if AdvnaSix stock as a result of a Honeywell Spi-off. I recently sold those shares but they consist of fur separate lots with a different cost basis for each lot. When I receive the check in payment for those shares, it will be for all of the 51 shares. How do I report the cost basis for those four different lots?

    Thanks for your help,

    HML

    #4875
    kaneohe
    Participant

    A word for the future: you posted your question in the “Our Website” sub-forum. It would have been more appropriate in the “Taxation of Investments” sub-forum which might attract more appropriate eyes.

    The 8949 where you report the details asks for dates and cost basis……the cost basis is in $$, not $/sh …….so you can report the sell date; then the buy date as VAR (for various). Report the sales proceeds and then for cost basis, just add up the $$ cost basis of the 4 lots to get the overall cost basis.

    #4892
    haroldml
    Participant

    I thnik that I thanked you for your answer but don;t see it here. I apolpgize if I didn’t thnak you for your time & effort.

    I have another question. Although the Honeywell shares after intially being purchased went through a number of changes over the years, all of the the 51 shares of AdnanSix stock were acquired on Sept. 30, 2016 so it seems that would qualify for a long-term capita gain. If I use VAR (Various) for the Buy Date, I don’t see how that would work for a long-term capital gain. Please explain.

    Thanks,

    HML

    #4893
    kaneohe
    Participant

    https://finance.zacks.com/can-use-various-date-acquired-column-schedule-d-11290.html

    You didn’t say but I guess I assumed you sold all those shares on the same date? If so , from the link,

    “Dating Your Transactions
    Among the data items you need to transcribe from Form 1099-B to Form 8949 are the dates you purchased and sold each asset. Normally, you simply enter the purchase date in the appropriate column. However, if you sold assets that you acquired through multiple transactions on different dates, you instead enter “various” in the column.”

    Technically although you received those shares on 9/30/16 so they are clearly LTCG, the actual acquisition date typically goes back to the various dates you acquired the mother Honeywell stock (even longer term).
    Since whichever method you choose will be long term, I don’t think would
    be a problem using the 2016 date either. Just be prepared to show your data if asked.

    #4894
    haroldml
    Participant

    Identifying the acquisition dates of the original Honeywell shares is rather difficult. I think that I probably have that information going back to the 1970s as I bought them as part of an emplyuee stock option plan when I worked there, bought on four different occasions. But that Honywell company no longer exists & was replaced by Hoeywell International when it acquired Allied Signal (or vice versa). So, I don’t know which dates to use. I didn’t know that Various would be correct on the 8949 for long term capital gains but, apprently, that’s OK & would solve a lot of problems in identifying the actual purchase dates.

    Yes, I sold all or the 51 shares at the same time. I was offered two options for those AdvanSix shares since this is an odd lot: Buy 49 additonal shares or sell all of the 51 shares, so I chose to sell all of them.

    Again, thanks for taking the time to help me. Much appreciated.

    HML

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