Tax Puzzler - sale of US shares aquired overseas

[Go_Blues]

Thanks very much for reading my post and for providing any advice that you can. I'm puzzled as to how to deal with some shares that I acquired 8 years ago while I was living and working in Germany (as a UK citizen).

I acquired 2000 shares in a US company when it bought the German Start-up I was working for in 2002. These shares were converted from the equity that I was awarded in the private company. I also bought an extra 1000 shares in 2003. I then came over to the US in 2004 to work for when this company when it closed the acquired German site. To complicate matters I transferred the shares to another broker when I moved to the US and lost the cost price information.

Fast forward to 2010 and I am still living and working in the US (for a different employer) and sold these shares and now have a 1099 from my broker for the full sale price.

I'd be very grateful if you have any advice as to how to report the sale of these shares and their appropriate tax treatment,

many thanks!

 

[Jason D.]

You should first try to retrieve the cost basis of the shares or at least contrive a reasonable estimate. The sale is a taxable event. If it is subject to foreign taxes, you will need to file form 1116 to claim any allowable foreign tax credit.