Anyone own KHC (Kraft Heinz) stock?

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bru
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Anyone own KHC (Kraft Heinz) stock?

Post by bru »

Kraft Heinz Company was formed by the merger of Kraft Foods Group and Heinz Company. In July of 2015 they issued a special dividend related to the merger. My shares, both in the old company and the new one, are held directly with Wells Fargo, the transfer agent. They have not issued a 1099-B related to the special dividend. At first I was told they would issue it by Feb. 16, now they are saying they were granted a 30 day extension by the IRS and may not issue it until March 17, 2016. I have heard others who hold their shares at another brokerage such as Fidelity have already received their 1099-B. It seems to me the 1099-B should have been issued by now and I am getting nowhere with Wells Fargo.

Can any KHC shareholder comment on their situation? I am ready to file my taxes but this information is needed. In addition to not being able to get my refund, every day I wait to file brings the chance of someone using my information to fraudulently file a return.
rgardne70
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Re: Anyone own KHC (Kraft Heinz) stock?

Post by rgardne70 »

I am in the same situation with my brokerage (not Wells Fargo).

Tis unfortunate that in this day and age, it takes so long for companies to inform shareholders as to the tax consequences and issue the 1099.

The only solution is for Congress and the IRS to absolutely mandate that this task be completed by no later than January 15 so that 1099's can be issued in a timely fashion.
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bru
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Re: Anyone own KHC (Kraft Heinz) stock?

Post by bru »

rgardne70 wrote:I am in the same situation with my brokerage (not Wells Fargo).

Tis unfortunate that in this day and age, it takes so long for companies to inform shareholders as to the tax consequences and issue the 1099.

The only solution is for Congress and the IRS to absolutely mandate that this task be completed by no later than January 15 so that 1099's can be issued in a timely fashion.
Thanks for your input. I wonder how Fidelity was able to issue the 1099-B, if that is indeed true? Wells Fargo said supposedly the 1099-B should be mailed in three to five business days but I think they were just trying to placate me since a third party actually does the mailing.
supernova72
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Re: Anyone own KHC (Kraft Heinz) stock?

Post by supernova72 »

I have a few shares and went through the KHC KRFT merger. Checked my TD Ameritrade tax statement and yes it included. Basically my 1099-B says the gain is my shares X $16.50 for that one time payout. All is taxable and it's short term capital gain. Hope this helps. Comment says "merger". TD charged me $38 for that. Not sure if I can deduct that fee however. I'm guessing not.
Tanelorn
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Re: Anyone own KHC (Kraft Heinz) stock?

Post by Tanelorn »

supernova72 wrote:I have a few shares and went through the KHC KRFT merger. Checked my TD Ameritrade tax statement and yes it included. Basically my 1099-B says the gain is my shares X $16.50 for that one time payout. All is taxable and it's short term capital gain. Hope this helps. Comment says "merger". TD charged me $38 for that. Not sure if I can deduct that fee however. I'm guessing not.
You can deduct their merger processing fee from the proceeds. Adjust the line item on your 8949 accordingly.
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bru
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Re: Anyone own KHC (Kraft Heinz) stock?

Post by bru »

So some brokerages have issued the 1099-B but Wells Fargo who administers for the direct shareholders hasn't. Doesn't make sense to me.
Wagnerjb
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Re: Anyone own KHC (Kraft Heinz) stock?

Post by Wagnerjb »

supernova72 wrote:I have a few shares and went through the KHC KRFT merger. Checked my TD Ameritrade tax statement and yes it included. Basically my 1099-B says the gain is my shares X $16.50 for that one time payout. All is taxable and it's short term capital gain. Hope this helps. Comment says "merger". TD charged me $38 for that. Not sure if I can deduct that fee however. I'm guessing not.
My brother owned Kraft shares, and his 1099-B shows the same short term gain of $16.50 per share. It also has the "merger" comment.
Andy
supernova72
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Re: Anyone own KHC (Kraft Heinz) stock?

Post by supernova72 »

Tanelorn wrote:
supernova72 wrote:I have a few shares and went through the KHC KRFT merger. Checked my TD Ameritrade tax statement and yes it included. Basically my 1099-B says the gain is my shares X $16.50 for that one time payout. All is taxable and it's short term capital gain. Hope this helps. Comment says "merger". TD charged me $38 for that. Not sure if I can deduct that fee however. I'm guessing not.
You can deduct their merger processing fee from the proceeds. Adjust the line item on your 8949 accordingly.
Thanks for the tax tip. I will deduct accordingly then. Feeling bad for the folk who are waiting on Wells Fargo. My statement for TDA was available the 3rd week of January.
pshonore
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Re: Anyone own KHC (Kraft Heinz) stock?

Post by pshonore »

supernova72 wrote:
Tanelorn wrote:
supernova72 wrote:I have a few shares and went through the KHC KRFT merger. Checked my TD Ameritrade tax statement and yes it included. Basically my 1099-B says the gain is my shares X $16.50 for that one time payout. All is taxable and it's short term capital gain. Hope this helps. Comment says "merger". TD charged me $38 for that. Not sure if I can deduct that fee however. I'm guessing not.
You can deduct their merger processing fee from the proceeds. Adjust the line item on your 8949 accordingly.
Thanks for the tax tip. I will deduct accordingly then. Feeling bad for the folk who are waiting on Wells Fargo. My statement for TDA was available the 3rd week of January.
I would not deduct it from the proceeds; if the total Gross proceeds on Schedule D does not match the totals on all 1099B forms, you are asking for a CP2000 letter. I'm not even sure its deductible; if it is I would increase the basis by $16. If its treated as a "covered security" where they reported basis, I would the put $16 in the adjustment column. It could also be considered a miscellaneous investment expense on Sched A (subject to a 2% floor - good luck with that)
Tanelorn
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Re: Anyone own KHC (Kraft Heinz) stock?

Post by Tanelorn »

pshonore wrote:I would not deduct it from the proceeds; if the total Gross proceeds on Schedule D does not match the totals on all 1099B forms, you are asking for a CP2000 letter. I'm not even sure its deductible; if it is I would increase the basis by $16. If its treated as a "covered security" where they reported basis, I would the put $16 in the adjustment column. It could also be considered a miscellaneous investment expense on Sched A (subject to a 2% floor - good luck with that)
The former is what I meant, increase the basis by the added cost, but you said the mechanics more clearly.
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bru
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Re: Anyone own KHC (Kraft Heinz) stock?

Post by bru »

Tanelorn wrote: You can deduct their merger processing fee from the proceeds. Adjust the line item on your 8949 accordingly.
My 1099-B is viewable online, still waiting for paper copy.

Making up the numbers for example purposes:

1099-B lists two amounts for Box 1d for the date of sale 7/8/2015, Quantity Sold = 10 shares for $250 and then Quantity Sold = 2 shares for for the amount of "$50.00". I know the first is long term and the second is short term. Then it shows for the same Box 1d "Non-Covered Subtotals $250.00" with nothing in quantity sold and finally Box 1d "Grand Totals $280.00", again with nothing in quantity sold. Then it shows Box 1e "Grand Totals Cost or other basis $120".

It says: "Box 5: Non-Covered Securities Transactions for which basis is not reported to the IRS and for which short-term or long-term determination is unknown by Wells Fargo Shareowner Services. You must determine short-term or long-term based on your records and report on Form 8949, Part I with Box Bchecked, or on Form 8949, Part II, with Box E checked, as appropriate."

Form 8949 Part I is short term, Part II is long term. I held the stock for more than a year prior to merger so how would I report this?

HFC has an FAQ where they go through different tax scenarios and depending on cost basis anywhere from all to none of this special dividend may be taxable. I am having trouble deciphering it all as it related to my situation but I don't think people should assume that the entire amount is a ST gain.
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