Money 101

[jbones001]

This is a great board. Finally some good advice w/o people pumping or bashing.

Question: I had a stock which did a RS and I received cash-in-lieu (CIL) for the fractional share I had after the RS. This cash came out to 8.29. The CIL happened in 2005, but I didn't sell the rest of the stock until this year (2006). My broker did not record the 8.29 in the 1099-B I was sent last year and I didn't notice the difference in the adjusted cost basis until I sold the stock recently. I thought this was a mistake in GainsKeeper, so I emailed my broker and they said that "According to the IRS instructions for the Form 1099-B form, 'sales of fractional shares of stock if gross proceeds are less then $20.00' are not required to be reported on the 1099-B form provided by a broker." I am looking for something that verifies this statement.

Thanks