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Author: MEG Three stars, 500 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120794  
Subject: Can anyone help with this one? Date: 1/13/2001 6:24 PM
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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
Toatl $883.54

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.

Thanks

MEG


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Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 44285 of 120794
Subject: Re: Can anyone help with this one? Date: 1/13/2001 7:26 PM
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What tax is due and how do I arrive at it?

The first thing you have to do is find out your tax treatment of the transaction. This should have been in the paperwork you got. If you can't find it there, check the company's board by typing the ticker in the "Ticker" box below.

TMF ExRO
Phil Marti

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