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posted Feb 27, 2019 7:49:00 AM

Can the taxes for a stock payment because of a merger be deferred to next year?

Express scripts was acquired by cigna on 12/21/2018 which was the merger date. I received a check dated dated 12/21/18 from Cigna for my express scripts stock  but I received it in January. Can the taxes be deferred to next year?

 

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1 Replies
Level 15
Feb 27, 2019 8:49:57 AM

please see the link from Cigna on how to treat the change in cost basis on the stock and the cash. it specifically states that 2018 is the year of the transaction, so the answer to your question is 'no' and I suspect you can't document that it was received in 2019 (the check is dated 2018 and the envelope is probably dated 2018) 

 

https://www.cigna.com/assets/docs/about-cigna/form8937.pdf

 

further it could get trickly on how to re-set the cost basis and what the gain is for this year's tax is - please read the link below closely 

 

https://community.quicken.com/discussion/7834047/merger-of-cigna-and-express-scripts