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tngo000
New Member

I have a loss from EMC/Dell merge. How to calculate cost basis and input to Turbo Tax?

I have a loss from EMC/Dell merge. 

I had 75 EMC shares (long term) at time of merger.  Total actual  basis was $4055.

My 1099B reported:                                      

(1)   1500 shares of EMC sold, Proceeds $1803.75, various date acquired, no cost basis.

(2)   0.360 shares of DVMT sold, proceeds $17.41, no date acquired, no cost basis.

  Can you advice me what basis to use for (1) the 86.77% of shares in Section 351 exchange, no loss cannot be recognized (2) the 13.23% of shares in the redemption, loss may be recognized and (3) the partial DMVT shares sold later, loss may be recognized?

How do I input them to Turbo Tax?

thanks


2 Replies
TomYoung
Level 13

I have a loss from EMC/Dell merge. How to calculate cost basis and input to Turbo Tax?

Since your broker is simply reporting the total cash proceeds of $1,803.75 you can simply report a basis of $2,049.23 for a loss of $245.48.  The loss represents the Redemption loss ($245.48) and the Sec 351 "break even" (no gain, no loss) of $0.

The basis you'd use against the cash if lieu for the fractional share is $86.26 for a loss of $68.85.

Your basis in the remaining 8 shares of DVMT is $2,455.99.

Tom Young

tngo000
New Member

I have a loss from EMC/Dell merge. How to calculate cost basis and input to Turbo Tax?

Hi Tom, how do you calculate the basis for the fractional share and 8 DVMT shares?

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