Thank you for that clarification. In December 2021, Dell Technologies prepared and filed Form 8937, Report of Organizational Actions Affecting Basis of Securities, a link to this form is below. Page 2 of Form 8937 indicates the following regarding basis for shareholders of Dell stock and VMware stock:
...Dell Technologies shareholders must allocate their aggregate tax basis in their Dell Technologies Common Stock held immediately before the Distribution among (i) the VMware Class A Stock (including any fractional share interest for which cash was received), (ii) the VMware Class B Stock (including any fractional share interest deemed received), and (ii) the Dell Technologies Common Stock in respect of which such VMware Common Stock was received in proportion to the relative fair market value of each after the Distribution.
The Attachment to Form 8917 also indicates that there is no one way to calculate basis in matters of this type. However, Dell does provide, in their opinion, a reasonable calculation method. That calculation method is on page 2, paragraph 1 of the Attachment.
After calculating the basis for your Dell shares and your VMware shares, we recommend that you enter the Dell shares as you have already begun, namely, in the section of TurboTax that relates to RSUs. Because the VMware shares were not acquired directly as RSUs, those can be entered into TurboTax in the same way as the sale of stock.
Form 8937 with Attachment
@Jordan1997
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