Well, it's clearly a taxable sale though a somewhat unusual one because the "proceeds" of the sale are coming from different places: some as shares of Ares Capital, some as cash from Ares Capital and cash from other sources.
The mechanics of actually reporting the sale in TurboTax will depend somewhat on the 1099-B you receive - the broker might use a different "fair market value" of Ares Capital shares, for example - but essentially in TurboTax you'll report a sale of your stock for $18.06 per share "as if" all proceeds were received in cash.
Your basis in the new Ares stock - using the above statement - is $7.93/.483 or $16.42 and the holding period for the new stock begins the day after closing.
Tom Young
