I called the REIT and the only thing they could provide was that the 1099-B was for return of capital. So, do I even have to report this form. She did refer me to IRC Sec 368(a)(1)(A). That just explains the merger. I did look at the Form 8937 filed by the REIT. Part ll (15) states the shareholder will recognize gain (but not loss) in an amount equal to the lesser of (1) the amount of gain realized (I.e. the excess of the sum of the amount of cash and the FMV of the common stock surrendered) and (2) the amount of cash received pursuant to the merger. If a shareholder acquired different blocks of common stock at different times or different prices, any gain must be determined separately for each block of common stock. The shareholder would reduce the adjusted basis for any monthly distributions received during 2019 that will be treated as a return of basis under IRC Section 301(c)(2). As part of the merger, I received $1.00 per share and .4681 share of the new REIT share for each of the old shares, par value $.01 per share, for a total merger consideration of $5.33 per share of old REIT shares. This is all Greek to me.
