I have vested RSU/ESPP SanDisk stocks, and then acquired by Western Digital in 2016 with $67.5 in cash and remaining exchange of 0.2387 shares of WDC stocks at $36.74. How do I determine the cost basis for these WDC stocks when sold? Is it $36.74 per share? Is there a difference between RSU or ESPP?
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"How do I determine the cost basis for these WDC stocks when sold?"
The SanDisk/Western Digital deal was a "fully taxable" transaction meaning that you simply subtracted the basis of your SanDisk stock from "proceeds" where the proceeds was the combination of cash and stock (at fair market value) received. If you did that correctly then the basis of the WDC stock received would be that same "fair market value". If $36.74 was the number used for the FMV of the WDC stock then that's your basis in the WDC stock. Your holding period reset too, starting the day after the merger occurred.
"How do I determine the cost basis for these WDC stocks when sold?"
The SanDisk/Western Digital deal was a "fully taxable" transaction meaning that you simply subtracted the basis of your SanDisk stock from "proceeds" where the proceeds was the combination of cash and stock (at fair market value) received. If you did that correctly then the basis of the WDC stock received would be that same "fair market value". If $36.74 was the number used for the FMV of the WDC stock then that's your basis in the WDC stock. Your holding period reset too, starting the day after the merger occurred.
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