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I held stock that was acquired in a merger. I opted for all stock, but had three choices: including all cash, or stock and cash. Because the acquiring company's price had fallen, I received an additional cash payment together with the stock. The payment was described as a top-up (because of the collar). I actually took a loss between the value of the two stocks at the time.

For tax purposes, is the cash "top-up" payment considered a cash dividend? Can the cash payment be offset with a loss taken on a different stock?

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