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posted Mar 21, 2024 11:19:56 PM

Merger with Cash to Boot

From the Broadcom purchase of VMware, I received Broadcom stock for a portion of my VMware shares and cash for the remaining shares.  I did not sell any shares in the last year, and have retained the Broadcom shares I received in the acquisition.  I uploaded my 1099-Bs into Turbo tax and so all shares are showing in Turbo tax as stock sales. Since I retained the Broadcom stock, I understood that only the Cash to Boot would be taxable at this time.  Should I just delete the entries for the VMware shares that were transitioned to Broadcom shares or do I need to report them as a sale?  If I report them as a sale, do I use my VMware cost basis and pay taxes on the gains for these shares even though I have not sold or received cash for them?

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1 Replies
Level 15
Mar 21, 2024 11:43:48 PM

see if page 3 of IRS form 8937 answers your questions about reporting the merger.

https://investors.broadcom.com/static-files/7720c4c1-c940-4d9d-800c-66819bfdc7a0