My company (A) merged with company (B) on 9/1. The day before the merger, company A paid out all retained earnings to the stockholders who all have vested restricted stock. I payed taxes on the awarded stock (83b election) in 2013. We were paid zero for the stock transferred to company B. Company B will pay a share of profits to company A original stockholders over 3 years.
The payout of retained earnings was substantial and reported as qualified dividends. Is there any way I can deduct my original cost? What happens if the future earnings don't pan out or I resign and forfeit them. How can I still deduct my cost?
