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You will have to determine if the buy out by another company was a taxable transaction. I suspect that it was. In that case, you would have to declare a gain on the disposal of your old stock. In computing this gain, you would figure the sales amount as the sum of the cash received plus the fair market value of the stock received.

In that case the cost basis for the new stock would be the fair market value used in the above.

You should be able to get the correct information from either the old company or the new company.

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