Sale of Stock Rights

[Botch]

My client received a1099-B for sale of stock rights without any cost bases. Contacted AST who did not have an answer. How do I determine the cost bases?

[itonewbie]

What kind of stock right is that?  Employer stock options (which are normally not transferrable) or are these puts and calls or something else?

What in the world is AST?

[poolcleaner]

American Stock and Transfer.  I believe they are a transfer agent.

[sjrcpa]

Ask the client how he got them. Have him dig up the paperwork.

[Botch]

In connection with a merger of GGP with Brookfield Property REIT, each share of common stock of issurer was converted into the right to receive 32 cents a share. AST is the American Stock Transfer. They issued the 1099-B

[Botch]

Yes

[itonewbie]

Your client should have been given material on the merger, the conversion to the new stock, and impact on cost basis .  Like my dear friends suggested, you need to have your client dig that up (or you can spend time scouring the Internet, which may have that archived somewhere).

But you mentioned that what your client sold is stock rights.  You still haven't explained what kind of stock rights those are.

[Botch]

I received a FAQ from the client on the merger and the form 8937 from the company's website but the cost basis is not clear or the type of right. I will ask the client to follow up on this. Thanks!

[sjrcpa]

The info to perform the calculations is frequently on the company's website under Investor Relations.