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I currently own shares of ASND with ~30% profit and had this for more than a year. If the merger goes through and LU takesover ASND, what is the tax situation when I sell LU (OLD ASND)shares with in the year of merger??

Is it short term since I owned the shares less then a year ro is it long term because I initially had ASND (more than a year) plus the duration after the merger??

Please help..

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chulyi writes:

I currently own shares of ASND with ~30% profit and had this for more than a year. If the merger goes through and LU takesover ASND, what is the tax situation when I sell LU (OLD ASND)shares with in the year of merger??

Is it short term since I owned the shares less then a year ro is it long term because I initially had ASND (more than a year) plus the duration after the merger??


I reply:

Long term. You get to count your holding period for ASND. But are you sure you want to sell LU? It's been doing pretty well and I hear that the Wise are singing its praises ;-). --Bob
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[[I currently own shares of ASND with ~30% profit and had this for more than a
year. If the merger goes through and LU takesover ASND, what is the tax
situation when I sell LU (OLD ASND)shares with in the year of merger??]]

You can read about this in my series of posts on this very issue in the Taxes FAQ area.

[[ Is it short term since I owned the shares less then a year ro is it long term
because I initially had ASND (more than a year) plus the duration after the
merger??]]

Your holding period for the new shares will be the same as your holding period for the original shares. So if your original shares were long term, your new shares will also be long term...even if you only hold them for a few days.

But you WILL have to adjust your basis in the new shares that you receive, and may receive fractional shares to deal with. Again, my post on this issue may shed some light on the subject for you. Check it out in the Taxes FAQ area.

TMF Taxes
Roy

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