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New Member
posted Jun 4, 2019 10:26:49 PM

Should taxes on the Johnson Controls/Tyco merger be paid on the entire JCI holdings or just the amount of cash received?

I had 277 shares of Johnson Controls inc (JCI) for a value of $12,160. The basis was 240 shares. During the merger with Tyco I got $1,588 in cash. I still had 232 shares of Johnson Controls Intl (JCI). I received a 1099-B with Box 5 Noncovered for 240 shares sold, the basis for all the JCI stock. Does this mean capital gains taxes should be paid on the entire 240 shares or just the amount actually received in cash?

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1 Best answer
Level 13
Jun 4, 2019 10:26:53 PM

It looks like this was an "inversion" and in this situation your proceeds is the sum of the cash and the fair market value of the stock. 

Tom Young

3 Replies
New Member
Jun 4, 2019 10:26:51 PM

I am having the same question. How did you do it... where you able to determine if you Noncovered  shares were shot or long term? what about the Cost of basis of them. Wells Fargo docent have that info and i have not record of them. Please advice. Thank you so much

Level 13
Jun 4, 2019 10:26:53 PM

It looks like this was an "inversion" and in this situation your proceeds is the sum of the cash and the fair market value of the stock. 

Tom Young

Returning Member
Aug 5, 2020 7:18:14 PM

EQ Shareowner should have your records after 2001. I bought my shares through the employee purchase plan starting when the brokerage firm was Firstar. Firstar merged with Bancorp to become US Bank until 2001 then  Wells Fargo and now EQ Shareowner. I can't locate anyone in US Bank that has any records. I believe I was taxed on the value of all my stocks 60K instead of subtracting my total deposits for cost basis.  Please help