TTWO ZNGA cash and stock merger tax reporting

[hmike]

I had ZNGA stock and because of the merger/acquisition I received $3.50 in cash and 0.0406 shares of Take-Two common stock (TTWO) per share of Zynga common stock (ZNGA). Merger article

Any one familiar with this specific deal or can point a way on how to determine the tax reporting on this kind of deal? Does this one apply? https://www.merriman.com/news/how-to-report-a-cash-and-stock-merger-on-your-tax-return/

[Anonymous_]

@Mike9241 

[Mike9241]

see this filing with the iRS

https://assets.ctfassets.net/wn7ipiv9ue5v/3Zqa9ePyIsgTLykrWUQo6B/c05f04323156001f731f60213bcde4c5/Fo... 

the redemption of fractional shares  is taxable.

let's say you had 100 shares of znga tax basis $1000

you get 4.06 shares TTWO and $350 cash 

the $350 reduces your tax basis to $650 in TTWO

650/4.06 = 160.10 per share

so the .06 share had a tax basis of $9.61

for which you received $y 

remaining basis in TTWO for the 4 shares  650-9.61

however, if stock was held in brokerage the 1099-B will reflect all this. 

[Critter-3]

Your broker has until the end of February to report this to you on a 1099-B form ... ask them how it will be reported when the form actually comes out. 

[EH1]

Same. Did you figure this out?

I think this page makes more sense than Merriman, results in same gain/loss numbers but different basis in new stock: https://s21.q4cdn.com/[removed]/files/doc_downloads/docs/merger_tax_consequences.pdf

But my current question is how to enter in TurboTax. Do I reverse engineer an adjusted basis that results in correct gain/loss or is there a cleaner way to adjust the gain/loss directly? 

Etrade statement shows a basis that results in correct gain for some long held ESPP stocks. But just has a footnote that says we don’t know how to figure basis for RSU stocks. These we paid tax on as part of income in years long past and have 3922 to document. I can figure out adjusted total basis on whole transaction per the linked pdf but now just don’t know how to enter correctly in TurboTax — and in particular what to do to zero out ones that are losses. 

[hmike]

I used https://www.costbasistools.com/cashtoboot/boot.php

[EH1]

Thank you!! That’s really helpful.