1099-B How to report merger of ZNGA and TTWO in TT desktop

[niksha0205]

ZNGA and TTWO merger with stock + cash 

The 1099-B I received does not have cost basis and i am not sure which way is accurate 

a. Received 1652 shared of zynga on 4/15 with FMV of 8.94 = $14768.88

b. 493 stocks were sold off for tax with net loss of -$24.70

c. For 1159 stocks of zynga, I received $4056.50 in cash +  47 stocks of TTWO + $6.59 cash in lieu of fractional shares. TTWO are priced at $116.12 based on this filing

e. Sold 45 stocks of TTWO on 06/17

Based on the results of costbasistool, The cost basis for TTWO stock should be $133

f. Total cost basis of Zynga stock = 1159*8.94 = $10,361.46

g. Cash to boot received = $3.5*1159 = $4,056.50

h. Mkt Value of 47.0554 shares of TTWO = $5,464.07

i. Total economic value received = $9,520.57 (g+h)

j. Gain or Loss = -$840.89 (f-i)

k. Net cost basis for 47 shares of TTWO = $6,304.96 (h+j)(absolutes)

Based on above scenario, I made 3 entries in TT with a net loss of -434.33

Q1: Is the cost basis accurate for all?

Q2: TT computes the RSU amount to be added in wages is $21,066.42 however only $14,768.88 is included in W2. How to fix/update this?

[RobertB4444]

Your cost basis calculation seems plenty accurate.  Save the information for your records in case you have to prove it.

If you should have had 21K instead of 14K added to your W2 then you should speak to your employer about correcting the W2 or you should adjust your basis downward to match the W2 amount.

@niksha0205 

[niksha0205]

Thanks Rob, I have figured out why turbo tax is giving $21k as my computed income

TT is treating Zynga and TakeTwo stocks as 2 vesting event 

Income from 1652 stocks of zynga at FMV of 8.94 = 14768.88

Income from 47 stocks of taketwo at FMV of133.99 =6297.53 

14k + 6k = 21k

However these were not 2 different vesting event.

To fix this, I have made only 2 entries, 1 for zynga reflecting stock sold for tax purpose and one for ttwo reflecting the final 47 shares i have received. This seems to have fix the computed income for Turbotax

What is your opinion on this method @RobertB4444 

[RobertB4444]

That is exactly what it should look like @niksha0205 .  Well done!