Baxalta Acquisition Tax Accounting

[nick11]

A stock we owned (Baxalta) was bought by a European firm (Shire) in a taxable event. We received cash as well as shares in the European firm. I see how to account for the short term and long term capital gain but am at a loss how to enter the new shares of the European firm and how to show the tax consequences. How do we handle this in Turbo Tax?

[TomYoung]

I have addressed the Baxalta / Shire transaction here:

https://ttlc.intuit.com/questions/3814587-can-you-help-baxalta-shire-merger-cash-and-stock

The transaction is fully taxable and you use the sum of cash plus FMV of the stock as "proceeds" to determine your reportable gain or loss.  It's "as if" all the proceeds were paid to you in cash and then you used some of the cash to buy Shire stock.

Tom Young