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Visitor II

UNDETERMINED TERM TRANSACTIONS FOR NONCOVERED TAX LOTS

I have a question concerning a 1099B entry on TurboTax. The entry in question falls under the heading “UNDETERMINED TERM TRANSACTIONS FOR NONCOVERED TAX LOTS”, and concerns some Banco Santander ADRs that I hold. From the import of TD Ameritrade tax information, TT provides the following entries:

Box 1a Description: 05964H105 BANCO SANTANDER SA ADR SPONSORED

Box 1c Date sold: 07/20/2017

Box 1b Date acquired: blank

Box 1d Sale proceeds: 225.57

Box 1e Cost of basis: blank

Box 2 Type of gain or loss: blank

Box X – unknown holding period

In addition, the 1099B from TD Ameritrade provides a Quantity for this transaction of 0.000. Examining my TD Ameritrade statement for July, 2017, there exists no account activity that corresponds to this transaction. Now Boxes 1b and 2 can be faked by assuming that the transaction corresponds to a long-term capital gain (I have held the ADRs for some years). However, I haven’t a clue as to what to enter for Box 1e, the cost basis. Does anyone have any suggerstions?

3 Comments
Catalyst V

UNDETERMINED TERM TRANSACTIONS FOR NONCOVERED TAX LOTS

When did you acquire them, and what did you pay for them? If they were in exchange for some other stock - i.e. Santander acquired another bank - you need to go back further to find what you originally paid to acquire this asset. (Or what you were already taxed on.)

Visitor II

UNDETERMINED TERM TRANSACTIONS FOR NONCOVERED TAX LOTS

It appears that this 1099B entry is related to the acquisition of  Banco Popular by Banco Santander in July/August 2017. The acquisition was an all stock purchase with new stock being issued by Banco Santander through a tender offer. The tender for new stock closed on 07/20/2017; on 08/03/2017 my TD Ameritrade account is credited with a "Qualified Dividend" of 248.63 which, after subtracting for an ADR fee of 23.06, comes to 225.57. I did not participate in the tender offer, so I am assuming that this non-regular dividend had something to do with adjusting stock values to account for the tender offering. I am inclined now to treat this as a return on capital. What do you think?

Catalyst V

UNDETERMINED TERM TRANSACTIONS FOR NONCOVERED TAX LOTS

I'm not so certain after browsing this:

https://www.santander.com/csgs/Satellite/CFWCSancomQP01/es_ES/pdf/20170705-Prospectus_Supplement.pdf (start at bottom of page S-46).

It may be capital gain, but I'm not that familiar with the transaction and may be missing something in the document.