Get your taxes done using TurboTax

"Do I just pay taxes on the cash or boot received?"

No.  This was a fully taxable transaction.  You deduct your basis from the entire proceeds (cash + stock) and report a gain or loss accordingly.

"Does my original basis in Rockwell Collins become my basis in UTX stock?"

No.  You have a new basis that's the same, on a per share basis, as the value used for the "stock" portion of the proceeds.

"Do I manipulate the basis on the form 8949 so my gain equals the cash I received?"

No.

Tom Young

NOTE TO FUTURE READERS OF THIS ANSWER:
You must understand that the answer given is relevant to this particular transaction.  There simply is no one or two sentence answer that covers all cash + stock mergers/acquisitions.

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