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I purchased shares of SDLI which will convert to shares of JDSU if the merger goes through. My question relates to long term capital gains. When does the one year holding period begin? When I purchased SDLI or does it begin when the conversion to JDSU occurs (assuming the merger is completed)?
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I purchased shares of SDLI which will convert to shares of JDSU if the merger goes through. My question relates to long term capital gains. When does the one year holding period begin? When I purchased SDLI or does it begin when the conversion to JDSU occurs (assuming the merger is completed)?

Holding period started when you purchased SDLI. This is the case for all mergers.
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<<I purchased shares of SDLI which will convert to shares of JDSU if the merger goes through. My question relates to long term capital gains. When does the one year holding period begin? When I purchased SDLI or does it begin when the conversion to JDSU occurs (assuming the merger is completed)? >>

As Roo Cat points out, your holding period for JDSU will be the same as your original purchase date for SDLI. I have a series of articles on this issue in the Taxes FAQ area (stock splits, spin-offs, and split ups). You might want to check it out for additional information.

TMF Taxes
Roy
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