How to account for a stock and cash merger?

kvs · ‎June 6, 2019

In December of 2018, Oclaro and LITE merged in as cash and stock deal. Each Oclaro share was worth $5.60 in cash and .0636/share LITE. How do we account for this on our taxes? We have long and short term holdings in the stocks due to RSU's and personal stock purchases. What part is taxable?

TomYoung · ‎June 6, 2019

In this particular case this is a fully "taxable proceeds" situation. That is, you sold all your stock and received "proceeds" amounting to the sum of the cash and the fair market value of the stock received.

So you essentially treat this as an "all cash" deal.

Tom Young