Do I need to report any capital gains on a stock sell which was done automatically as part of a company merger?

[ankkapoor87]

I owned stock of SLACK technologies which was purchased by Salesforce. My Slack stock was sold to buy Salesforce - all done by the companies involved. I still own all the leftover Salesforce stock so technically I didn't sell it.

[DavidD66]

Yes, you will need to report the transaction.  For Slack shareholders this merger is a cash-plus-stock reorganization, which means the transaction is taxable to the extent cash was received.  Details on how to report the transaction should have been provided to you by Slack, or your Broker.  If you held the stock through a broker, I recommend you contact them for specifics of how to report the transaction.  Information is also available from Salesforce, they posted this on the Investor Relations page of their website:

Form 8937 for Slack Technologies, Inc. acquired effective July 21, 2021

You can request additional information from Salesforce Investor Relations by going to:

Salesforce Investor Relations

[fanfare]

@DavidD66 

 Your broker is not going to give you tax advice, nor tell you how to report your activity.

[kenyan65]

Salesforce transaction resulted in an exchange of Slack (WORK) shares into Salesforce (CRM) shares plus cash. You'll need to determine whether your Slack shares were short-term or long-term holdings for capital gains purposes. The cash will be taxable.