tax basis of shares received in demutualization of insurance company

[rjsctcpa]

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

[sjrcpa]

I've been using zero since IRS pronounced that.

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

[BobKamman · Accepted solution]

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

[rjsctcpa]

Thank you

regards

bob

[RCBCPA]

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