Taxes after acquisition

[Dbbaskette]

The recent Broadcom/VMware acquisition took 52.1% of

my VMW shares and gave me .252 AVGO shares.  The other 47.9% of my shares were cashed out for 142.50.  Most things I read are in regards to Cash 2 boot, but i am not 100% sure that applies because that is normally stock and some cash per share. This is pretty important because it means either paying cap gains on just the cash portion versus doing the cash 2 boot exercise and resetting basis and treating all of the cash as the gain.  Would

love some thoughts on this.   The Broadcom 8937 implies the lattwr but says it should not be considered Tax advice.  

[Mike9241]

use the info on the 8937.   other options that you might have to defend if audited is to use for AVGO  the opening price, highest price, lowest price closing price on 11/20/23. 

the 8937 says lesser of

lesser of (1) the sum of the amount of the cash $142.50 (other than cash in lieu of a fractional share of
Broadcom Common Stock) and the fair market value of the Broadcom Common Stock received .252 x $979.50 in exchange for the share of VMware Common Stock surrendered, minus the holder’s adjusted tax basis in the share of VMware Common Stock surrendered in exchange therefor, and (2) the
amount of cash received for such share of VMware Common Stock.  $142.50

also realize that if held in a brokerage account, the broker will in all likelihood use the 8937 and provide reports showing this. 

[chefserv]

the brokerage didn't do a good job or even attempt to show adjusted cost basis.

Further, for VMW shares that were RSUs I also don't know how to handle the adjusted cost basis for the shares that converted to AVGO.  If I call into TurboTax (since I paid for the tax expert advice) I'm not even sure they're prepared to help with this.

[inin2012]

@chefserv@Dbbaskette I'm curious what you both decided to do for the cash conversion?

I had ESPP and RSU that got converted to cash+stock. I read the form 8937. It sounds to me that we need to report the cash portion as capital gain fully without adjusting the cost that we paid to buy the ESPPs or the ordinary income that we have paid tax on when the RSUs were vested. Is this some sort of Accounting rule?

No luck with etrade customer service. They have been giving me wrong answers even for some simple questions about the supplemental form. I had to figure things out by myself...

[Faith35]

Did you end of recognizing all of the cash as a capital gain?

[Faith35]

Did you end up using a cost basis or were you taxed on the entire cash amount? Thought about paying for live advice too but unsure if they would know.