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When you receive cash, it is almost always taxed as a capital gain based on the original cost and purchase date. The new shares retain their original cost and usually the original purchase date, but are not taxed until sold.

I am more familiar with mergers where you where you adjust the shares held in each lot that you had purchased with the number of shares you received from the acquiring company. Each lot retains its original cost basis. If I receive only .2493 shares for each share that I hold but retained the original lots cost basis, the per share cost basis would be unrealistically high.

How do you adjust the cost basis of each lot to reflect the cash that you received in addition to the shares?
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