Cash in Lieu of Fractional Shares
A company you invested in might send you a check instead of crediting a fractional share to your stock account. You might also receive a Form 1099-B at the end of the year with the description of “cash in lieu.”This is for the cash (the check) you received in place of receiving a fractional share.
There are different reporting rules depending on why you received the cash.
The company might have sent you cash in place of a fractional share after a stock split. Most corporations don’t issue fractional shares when they split a stock. They pay the shareholder cash for the fractional share, and the fractional share is considered sold. So, you’ll receive a 1099-B.
If you're working a summer job, how can you tell if you're exempt from federal withholding? Learn more at H&R Block.
How much investment income can children earn before paying taxes? Learn more from the tax experts at H&R Block.
Learn about the different sources of income and determine which ones are taxable and which are tax-free from the experts at H&R Block.
If you are giving large gifts this year, it's important to know the IRS rules surrounding gift taxes. Learn more about the gift tax exclusion at H&R Block.