1099-b tax question

[Aerogal]

I hope one of you can help - Mr A. was employed by a company that bought him stock (Restricted Stock Fund). He went govt and decided that since this stock was with a foreign owned company and he would be in a 'purchase' position that may include this company, it would be best to divest the stock.

So - famous last words when he started with this company - don't lose the paper work because someday I'm going to have to account for this on our taxes. Guess what?

I was able to find the purchase prices for the shares (in pounds), I was able to find the exact exchange rate on the dates of purchase. I figured out what part was long term and short. What I can't figure out is how they were bought. I don't know if the company bought them or if he paid part? No paper work says who bought except it's all in his name. Do I claim the purchase as his and offset the dividend by the cost of shares, or do I say he paid $0.00 for the share and take the whole dividend as income?

 

[ProfMoneyWise]

Go back to the company that made the purchase and start there. Probably not the first person to misplace paperwork.

Never ever claim anything that cannot be proven if called upon to do so and if after you obtain the information you are seeking and you are still in doubt consult with a tax professional and remove all doubt.

 

[Aerogal]

I called the 1099 issuer. They told me that since the company bought him the stock as compensation, and he is responsible for any taxes on the dividend, to treat him as the buyer.

We're good to go now