Tricky IRS

[Baychamp1]

So I received my annual brokerage statement (non IRA) & it contains a 1099 -B on a short term gain of a little over $2700 on a stock I sold or disposed of on 3/2/15, problem is I never sold any of it. Bottom line the company did an inversion on that date, looks like new IRS reg's on inversions gonna cost shareholders to pay taxes on the "realized" gain with no loss allowed. My question Is shouldn't I get a stepped up cost basis to reflect this if I actually sell these securities in the future? Any CPA's on here dealt with this yet, mine hasn't but he's fixin to.

[bjhooper82]

The owner of this site (ckinchen) is a CPA

[Baychamp1]

Originally Posted by bjhooper82

The owner of this site (ckinchen) is a CPA

Thanks, the company I was referring to is Mylan Labs - a generic drug maker, unfortunately my assumptions were correct. The IRS, according to their opinion has the right to tax shareholders even though shareholders have received 0 compensation in any form, much like a siezure of assets. We need a fiscal conservative in the White House & tax reform.

[Big Hutch]

We need serious tax reform. Simplified and easy to understand. A flat tax with a maximum tax rate of 10% would be great. No taxes on investment income generated by money previously taxed such as in a CD or taxable investment account.

People would be amazed how much that would help the economy by increasing disposable income and increasing the incentive to invest.

It will not happen because the creation of tax loopholes are lucrative for those we elect to political office.

Just my 2 cents.
Robbie aka Big Hutch