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kovy
New Member

1099B - Exchange of shares in merger of companies - 1 for 1. Is this taxable? If so I get proceeds less basis. If so, what is new basis in new company? Thx Chris

 
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TomYoung
Level 13

1099B - Exchange of shares in merger of companies - 1 for 1. Is this taxable? If so I get proceeds less basis. If so, what is new basis in new company? Thx Chris

"Is this taxable?"

If you got an 1099-B then "Yes".  Typically your basis in the new company is the per share FMV of the new shares at the time of the merger.  With a new holding period starting the day after the merger.

Tom Young


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3 Replies
TomYoung
Level 13

1099B - Exchange of shares in merger of companies - 1 for 1. Is this taxable? If so I get proceeds less basis. If so, what is new basis in new company? Thx Chris

"Is this taxable?"

Might be, might not be.  It all depends on the deal.  Companies involved?  Did you get a 1099-B?
kovy
New Member

1099B - Exchange of shares in merger of companies - 1 for 1. Is this taxable? If so I get proceeds less basis. If so, what is new basis in new company? Thx Chris

thanks for answer - I was hoping it was like the Heinz case that was answered earlier where gain was difference between fmv of new shares less basis of old shares
TomYoung
Level 13

1099B - Exchange of shares in merger of companies - 1 for 1. Is this taxable? If so I get proceeds less basis. If so, what is new basis in new company? Thx Chris

"Is this taxable?"

If you got an 1099-B then "Yes".  Typically your basis in the new company is the per share FMV of the new shares at the time of the merger.  With a new holding period starting the day after the merger.

Tom Young


View solution in original post

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