This is one of those somewhat complicated "Stock + cash" deals that require some special figuring.
I'm sure you WILL receive a 1099-B so you probably want to wait for it.
Here's the essence of how these deals get handled for income tax purposes.
1) This is considered a sale of Susquehanna stock.
2) The "proceeds" for the sale is the sum of the cash received and the fair market value of the stock received. Using the closing price of BT&T on 7/31/2015, (the day before the sale closed), of $40.27 the "proceeds" per share of Susquehanna stock tendered would be $14.2383. ($4.05 cash + .253 x $40.27).
3) You are required to make your calculations of gain or loss on a
lot by lot basis.
4) Losses cannot be utilized. They are not reported, they are not used to offset gains on other lots.
5) Gains are reported, but the gain, by lot, is limited to the
lesser of the gain calculated using the "proceeds" as shown above or the cash received.
Given all this the actual mechanics of entering the sale depend on how the 1099-B reports the proceeds - only the "cash" or "cash + stock", and you'll have to "derive" a basis figure to use in order to come to the correct gain.
The holding period for each lot of Susquehanna you tender carries over to each lot of BT&T you receive and the basis of each lot equals the basis of the lot of Susquehanna you tendered minus cash received for that lot plus gain recognized on that lot.
If you have multiple lots or are still confused and don't mind sharing your lot detail - date acquired, number of shares, basis - I can give you actual numbers to use.
Tom Young
