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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Re: Merger - what to report Date: 3/29/2012 5:13 PM
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The starting point for any stock merger is that the merger is fully taxable. It's possible the companies involved arranged for the transaction to be fully or partially tax-free. I'm pretty sure your's isn't fully tax-free, as you received some cash. The cash part is almost always taxable. It's possible that the stock portion is partially tax-free. But you can't seem to find any documentation to prove that.

So until you find something different, you received $19 in cash plus the FMV of .6485 shares of company B for each share of company A. That amount ($19 + FMV) is the sale price to report on your return. (Rats - I've got to learn that new form number - Form 8949???) The cost I hope you know from your other paperwork on the RSU grant.

The cost basis of the new shares (company B) would be the FMV you used for the sale calculation.

--Peter

PS - You'll have a second sale for .967 share of company B, unless they let you hold fractional shares.
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