I received cash plus 150 shares of Company B stock in exchange for Company A stock I owned as part of a merger. The 1099-B form shows proceeds equal to the value of the stock plus the cash. I believe that I am liable to pay taxes on just the cash portion and my old basis in Company A stock becomes my new basis in Company B stock. There is no basis listed on the 1099-B and it says to record code E on my form 8949. If I am correct and am only to pay taxes on the cash portion, then should I manipulate the basis so that the proceeds - basis = cash received? I don't think I should have to pay taxes on the entire proceeds portion as that includes stock I have not yet sold.
