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r/taxhelp • … • u/rocknrollstalin

SPAC Common Stock and Cost Basis for Realized Gains/Losses?

I'm looking at offsetting some of my LTC gains in 2023 with losses and had a question about some 2023 losses in $LICY for SPAC acquisition company shares of $PDAC I purchased in 2021.

I bought $2262 (200 shares@$11.31) of the acquisition company $PDAC in March 2021, which completed their business combination with $LICY in August 2021 at $10/share ($2000).

I just sold those 200 $LICY shares @$0.65/share in 2023 for $120 which I'm figuring should qualify as either a $2142 loss or $1880 loss depending on cost basis.

Can I enter the cost basis as the original $2262 purchase price or should it actually be the $10/share common stock price from when the business combination occurred?

The transactions were made using Ally Invest who recorded the transition from $PDAC to $LICY as a $0 transaction (-200 PDAC and +200 LICY) so I assumed that I wasn't expected to realize the $262 loss in 2021 and didn't put anything on 1099-B.

Now for my 2023 sale of $LICY I am seeing Ally marked the cost basis as $0 so I would actually *owe* a small tax for LTC gains if I didn't adjust anything. Obviously I'd much rather offset $1880+ of my gains.

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