Received a 1099B reporting two transactions resulting from the EMC/DELL merger.]
1) 9/7./16...200.00 shares of EMC... Proceeds $2405.00."various" date acquired...no cost basis
2) 9/20//16....0.146 shares of DVMT sold...proceeds 7.07....N/A date acquired...no cost basis
I understand that to derive the values needed for a Form 8949 in a tax return it is very complicated and requires a spreadsheet to do it. Does anyone have such a spreadsheet that they will share with me??
I am attaching a spreadsheet in which I have tried to work out the total cost basis and total proceeds of the EMC/DELL merger. Please tell me if you think it is correct or where I went wrong.
If you can give me cost basis for each of these 3 cases I can subtract them from each of the "proceeds" and then generate the Form 8949 for the 1099B.
Did you read https://ttlc.intuit.com/questions/3405510 ?
Your proceeds for the Sec 351 calc is 100 x $20.17 (cash) + 100 x .11146 x $47.20 (stock) for total proceeds of $2,543.09. You subtract basis of $1,104.95 x .8677 = $958.77 for a "real" gain of $1,584.33. Since that amount is less that the cash received that's the gain you report. Most brokers seem to report "proceeds" for these transactions as only the cash received or $2,017.00 in this case so your DERIVED basis is $432.67 to come up with the $1,584.33 gain.
Your proceeds for the Redemption calc is $3.88 per share of $388.00. You subtract from that $1,104.95 x .1323 (remaining basis) for a gain of $241.82.
You can combine these and report proceeds of $2,405.00 and basis of $578.86.
Your basis in the 11.146 shares received is $958.765 - $2,017.00 + $1,584.33 = $526.09 so you partial share has a basis of $6.89
100 x $20.17+100 x .11146 x $5.66 = $2,075.63.... not $2,543.09 as you listed.
This correction ripples through your other calcs as follows for new numbers:
1) Real gain= $2,075.63 - $1,104.95 x .8677 = $1.116.86...not the $1,584.33 you listed.
2) Redemption Gain = $388.00 - $1,104.95 x .1323 = $241.82..as you also listed.
3 11.146 DVMT stock basis = $958.765 - $2,017.00 + $1,116.86 = $58.628...not the $526.09 you listed.
4) Therefore, Partial share DVMT stock basis = 0.146 X $58.628 / 11.146 = $0.77....not the $6.89 you listed.
Do you concur with these corrections? If so I am ready to finish my tax return. If not, please tell me where I went wrong.
Thanks so much for your help on this, Tom. I hope it will also help others who have to report EMC/DELL merger on their taxes. BTW i corrected my spreadsheet to use your calculation formulas so if anyone wants it I can provide it to them to use on their own case.
I'm away from my computer but you are correct. Obviously I picked up the wrong number - total cash received - and typed that in. But the proceeds number is CORRECT. The $5.26 is per FRACTION of a share so proceeds = 100 x $20.17 + 100 x $5.26 = $2,543.