Capital Gains for Takeda aqusition of Shire

[Anonymous]

I owned 20 shares of Shire stock purchased through an ESPP. When Takeda acquired Shire on 01/08/2019, I received $90.99/share in cash and 5.034 shares (valued at $19.03/share) of Takeda stock/share of shire stock. For a total of about $3735.24.

($90.99/share x 20 shares=$1819.8)+($19.03/share x 5 shares x 20 shares = $1915.44)

= $3735.24

My cost basis in the Shire shares was $2509.80 and I was taxed as a disqualifying disposition on my W-2 for the discounted ESPP shares at a value of $1068.54. For a total cost basis of $3578.34.

$2509.80 + $1068.54 = $3578.34

Did i calculate my capital gain of $156.90 correctly?

$3735.24 (total value of sale) - $3578.34 (cost basis) = $156.90

I have held the Takeda stocks, so my 1099-B is only showing the value of the cash that I received. Can I just make an adjustment to the reported cost basis, to reflect a capital gain of $156.90?

[TomYoung]

"Did i calculate my capital gain of $156.90 correctly?"

Not exactly.  You received 5.034 shares, not 5.  Yes, I know you ended up with 5 but that's because the fraction of a share was sold, as a separate transaction, via the "Cash in lieu" (CIL) you received.  And then the $1,068.54 of compensation gets allocated to the 5.034 shares, meaning that the CIL isn't a pure "profit" event, you get to deduct a small amount of basis when you record that "sale."

I haven't done the math here and as a practical matter what you've done is, as the saying goes, "close enough for government work" (heh) so maybe you leave it as is.  I'm just answering your literal question literally.

"1099-B is only showing the value of the cash that I received. Can I just make an adjustment to the reported cost basis, to reflect a capital gain of $156.90?"

Yep, that's what you do in these cases.