The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Can anyone help with this one?||Date: 1/13/2001 6:24 PM|
|Author: MEG||Number: 44282 of 122105|
Please can anyone explain how this should be treated for taxes?
I had accumulated 66.895 shares of Stock A in a DRIP
Of the total, .664 shares cost $6.67 during the past year (short-term treatment)
The rest are long term at a cost of $ 876.87
Now the fun.
Tender offer for all of the shares.
You get $ 35.75 / share = $2391.50
You also get 19.734 shares of a new stock.
The fractional shares, .734 are then immediately sold the same day at $ 67.014/ share (price of the new stock)
.734 x $67.014 = $ 49.19
Check received = $ 2391.50 + $49.19 = $ 2440.69
I now have 19 shares of a new stock and a check for $2440.69
What tax is due and how do I arrive at it?
I hope some one can help me with this one.
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