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Level 2
posted Oct 26, 2020 7:31:11 AM

How to file taxes if the stock ticker symbol change due to merger ?

Lets say, I bought 100 stocks of stock A at $10 each. So total investment of $1000
Due to company's merger, the stock symbol change from A to B
 Now, in my Robinhood account, it shows that I have 100 stocks of company B which is priced at same $10 per share.

So, if I sell these 100 stocks of company B now, how will I be reporting this sale ?

 

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1 Replies
Level 15
Oct 26, 2020 9:34:12 AM

You will report the sale as it is shown on the Form 1099-B or consolidated statement that Robinhood sends you for the year of the sale. I'm sure Robinhood will keep track of all the necessary information so that the sale is reported properly.


You should have received a document from the company (or from Robinhood) advising you of the merger and any related tax effects. It's possible that there was no tax effect, and the sale will simply be reported as a sale of B with a basis of $1,000, and with the purchase date being the date that you originally bought A.