What is the cost basis of MetLife from demutualization?
It was determined that the MetLife stock had a Cost Basis of $14.25/share in April 2010. 2. The Federal Court of Appeals ruled in 2008 that IRS cannot impose a zero Cost Basis on MetLife stock after their demutualization in April 2000.
Does MetLife use Computershare?
common stock is held with Computershare in the MetLife Policyholder Trust (the “Trust”), you must first withdraw your shares from the Trust by completing a Notice to Withdraw form. You may download this form from www.Computershare.com/metlife or by calling (800) 649-3593 to request a form to be mailed to you.
What is MetLife demutualization proceeds?
Demutualization is the process of converting a mutual life insurance company, which is owned by its policyholders, into a publicly traded stock company owned by shareholders, pursuant to a plan of conversion approved by policyholders and government regulators.
Are MetLife dividends taxable?
The fees paid on your behalf by MetLife are considered an additional dividend (“Imputed Dividend”) for Federal income tax purposes, and may be reported to you on Form 1099-DIV.
How much does it cost to demutualize MetLife stock?
Pursuant to the IRS, the cost basis of shares received through a stock demutualization is zero. For example, if 100 shares of stock are owned as part of a demutualization and the per share value of the stock is $30/share, the value of the shares is $3,000.
Is there basis in stock received in demutualization?
That court held that the Dorrances had basis in the stock they received through the demutualization of the insurance companies ( Dorrance, CV – 09 – 1284 – PHX – GMS (D. Ariz. 4/19/13); see earlier coverage, ” Tax Matters: Courts Diverge on Basis in Shares Received in Demutualization ,” JofA, June 2013, page 77).
What is the value of MetLife stock per share?
For example, if 100 shares of stock are owned as part of a demutualization and the per share value of the stock is $30/share, the value of the shares is $3,000. If the original shareholder sells the shares during life, the proceeds will be $3,000 less any administrative costs and the sale must be reported on the federal income tax return.
What is the basis of a demutualized insurance company?
The basis of the shares is not zero, as the IRS held. The Court said the basis of stock in the insurance company received in demutualization is equal to the value of the shares on the date of the demutualization (not to exceed the total of the premiums the taxpayer had paid for the insurance policy up to the point of conversion).