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Level 2
posted Jun 5, 2019 11:24:52 PM

1099-b shows a sale but it was a merger

Express Scripts and Cigna merged in 2018.  I owned Express Scripts stock at the merger.  I received a 1099-b from Vanguard that shows proceeds of a sale of all of my Express Scripts stock even though I didn't sell anything.  The Express Scripts stock was converted to Cigna stock.  How do I handle this?

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1 Best answer
Expert Alumni
Jun 5, 2019 11:24:53 PM

A stock exchange in a merger is not a sale and is not taxable. You do not report that form 1099-B.

If you did not receive any cash from the transaction, the cost basis of the Cigna shares that you received is the cost basis of your old Express Scripts shares.

5 Replies
Returning Member
Jun 5, 2019 11:24:52 PM

I had a 1099-b from Fidelity same as this one.  I don't have an answer yet?

Expert Alumni
Jun 5, 2019 11:24:53 PM

A stock exchange in a merger is not a sale and is not taxable. You do not report that form 1099-B.

If you did not receive any cash from the transaction, the cost basis of the Cigna shares that you received is the cost basis of your old Express Scripts shares.

Level 2
Jun 5, 2019 11:24:54 PM

Thx for the very quick response!

Expert Alumni
Jun 5, 2019 11:24:56 PM

Having now checked the details of the Express Scripts - Cigna merger, I see that it was for cash and shares. So you did receive some cash at the time of the merger. Your stock broker who knows the details of the deal should give you guidance on how to report this transaction.

Returning Member
Jun 5, 2019 11:24:57 PM

The cash was received into the Cigna Account also.  So do I not have to pay tax on it until it is withdrawn from Cigna?