topic How do you report $580 that was cash as part of a merger stock deal? I got that in a tender transaction on 65 shares. There is another 4620 with basis on a 1099B. in Investors & landlords

How do you report $580 that was cash as part of a merger stock deal? I got that in a tender transaction on 65 shares. There is another 4620 with basis on a 1099B.

emezias — Tue, 15 Sep 2020 15:12:56 GMT

Some of the stock sale bought new shares. It's a taxable deal. Is the amount already in the Box 1d proceeds on the 1099B? Do you add it there?

Re: How do you report $580 that was cash as part of a merger stock deal? I got that in a tender transaction on 65 shares. There is another 4620 with basis on a 1099B.

mellish7777 — Tue, 15 Sep 2020 16:10:56 GMT

Mergers and cash received in mergers.

Re: How do you report $580 that was cash as part of a merger stock deal? I got that in a tender transaction on 65 shares. There is another 4620 with basis on a 1099B.

mellish7777 — Tue, 15 Sep 2020 16:14:19 GMT

In some mergers, part of the consideration is provided in the form of cash. For example, in a 1999 merger, shareholders of AirTouch received .5 shares of new Vodaphone AirTouch ADS plus $9.00 in cash for each common share they owned. Here’s how you figure your gain:

Step 1: Determine the overall gain you have on the exchange. To do this, you need to know the value per share of the merger consideration, including both shares and stock. Generally the company gives you this information at the time of the merger. If you can’t find this information, it’s likely to be on the company’s web site. Multiply that figure times the number of shares you held to determine the total consideration you received. Then subtract your total basis in the shares you held to get the overall gain.
Step 2: The amount of gain you report is the lesser of the amount of gain from step 1 or the amount of cash you received.
Step 3: Your basis in the shares you received is equal to your basis in the old shares, increased by the amount of gain you reported and decreased by the amount of cash you received.

Re: How do you report $580 that was cash as part of a merger stock deal? I got that in a tender transaction on 65 shares. There is another 4620 with basis on a 1099B.

emezias — Tue, 15 Sep 2020 17:59:29 GMT

This is great information.

In this case, ALTABA, shares were sold and money got reinvested in BABA shares. It was a taxable conversion. Also - not all of my shares were converted. This created the confusion. I have both a 1099-B total gain and a separate cash TENDER amount seen on the ETrade tax form. It looks like the 1099-B gain is the sum of the TENDER and the cash that was reinvested so I don't need to do anything else about the cash. Your reply helped clear that up. Thank you.