Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: irasmilo 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 120798  
Subject: Re: Mergers/Spin-offs on 1099-B Date: 10/16/2010 11:10 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
This web site might help you figure out what is going on:

http://www.costbasis.com/


Peter,

This looks to be a very useful site. Thanks for the reference.

As a side note, miji managed to track me down on Thursday evening. I told her that I would be happy to review the transactions after I finished my October 15 deadline work (I hate extensions). I got back to her last evening and she was able to efile her returns just before the midnight deadline. Another satisfied customer of this forum. <g>

For anyone who wants to know the specifics, the Vignette/Open Text merger was a fully taxable transaction where the Vignette shares were sold for $8.00 plus the value of 0.1447 shares of Open Text, followed by a "purchase" of 0.1447 shares of Open Text for each share of Vignette, followed by the sale of any fractional shares of Open Text.

The Tim Horton reorganization was what I would call a hybrid merger. The shares of old Tim Horton were merged into new Tim Horton on a 1:1 basis. However, if the new shares were worth more than the cost basis of the old shares, the excess would be a taxable capital gain. If the new shares were worth less than the cost basis of the old shares, the loss could not be realized at this time. Cost basis in new Tim Horton is the greater of value received or cost basis in old Tim Horton.

Ira
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Berkshire Hathaway

Reestablishing the Middle Class
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement