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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121261  
Subject: Re: Forced stock sale Date: 1/27/1999 8:27 AM
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[[I own several shares of CILCORP which have made very good gains.
CILCORP is being bought out by AES on a strictly cash deal, there are no
options to take AES stock.]]

Bummer...

[[ My question is this: Since this is a forced sale, can I roll all the money over into
another utility stock without having to pay capital gains until such time I sell the
new stock that I roll the money over into?]]

Nope. Sorry. Regardless of if the sale is "forced" or not, once the sale is made, you must recognize the gain.

This is the VERY reasons that business combinations and mergers are done with company stock rather than cash. If you were given stock in the new company (in exchange for your old shares), there is not tax event. But because you are given cash, it's a taxable event.

Sorry...
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