Tom, thank you for this excellent breakdown on how to handle this Dell-EMC merger transaction.
I have a follow up question... if the EMC shares were originally acquired from an earlier acquisition of another company that may be eligible for qualified small business stock (QSBS) treatment per Section 1202, how would you handle the "eligible gain" component with respect to this transaction above?
In the case of the earlier merger, it was a straight stock exchange (no cash other than CIL) and treated as a tax-free reorg per Section 368 of the tax code.
I guess the bottom line is... do I calculate the Dell-EMC merger transaction per your steps above, and THEN apply the 50% gain exclusion for QSBS "eligible gain" from the earlier merger? And if so, how do I enter this in TurboTax... as it appears to be an "all or nothing" scenario when attempting to enter this via the special situations screen flow. In other words, either the entire gain for a given lot is treated as QSBS or not at all, based on my earlier tests with TurboTax Premier (desktop version)...
Any insight you can provide on this is greatly appreciated... thanks in advance!
