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Author: ghelebrant Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120825  
Subject: cash & stock Merger Date: 10/22/2001 9:20 PM
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How do I figure the cost basis of stock in a company that was bought out receiving cash and shares of stock in the new company? The transaction was approx. 60% cash and 40% stock but the cash portion was less than my cost basis of the original company stock purchase. The stock portion was also a cash equivalent (a % of a share of the new company stock)to bring the dollar offer to 100%. The combined settlement was a net gain.
Thanx in advance
Gary


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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 54770 of 120825
Subject: Re: cash & stock Merger Date: 10/23/2001 12:53 AM
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How do I figure the cost basis of stock in a company that was bought out receiving cash and shares of stock in the new company?

You probably allocate your original basis between the new stock and the cash. Buried somewhere in the paperwork you got should be an explanation of the tax treatment. If you can't find it there, investor relations or the board for the company here should get you the information.

Phil Marti

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