Bristol Myers Squibb acquired Celgene in November 2019. I'm not sure how to reflect the information on the 1099 and 1009 B by brokerage provided. I owned 320 Celgene shares on the date of the merger, 11/22/19 and the same number afterward. For each share of Celgene I received one share of Bristol Myers Squibb and $50 in cash for each share.
The market value of the Celgene stock was $34,569 according to my October statement (320 shares @ rate x 108.03). In November after the sale I had the same amount of shares, 320 @ $53.40 for a market value of 18,220.80). I received $16,000 in cash.
How would this be characterized for tax purposes? My brokerage showed on the 1099B:
320 shares sold/disposed on 11/21/19
Proceeds reported 34,787.20
date acquired: various
Cost basis: $4,117.85 (before the merger)
Gain or loss: 30,669.35
There is a notation on the 1099: “MERGER”
The amount of stock (shares) I ended up with after the merger is the same but the market value declined. The cost basis after the merger was $17,888. I did receive cash in the amount of $16K.
I received a higher percentage of stock than $ from the merger.
Is this a taxable event? If so, how do I enter it in Turbotax?
