Stock liquidation due to merger

[gangelo]

Is a payout from owning stock due to a merger treated any differently than as if one had sold the stock themselves regarding capital gains/loss?

More specifically, my wife held RSA stock in her company which was taken over by another company.   The other company paid my wife a specific price for each share she held as RSA when the merger closed.   (There was no transfer of stock from one company to the other.   It was an all cash deal.)

Is this transaction treated any differently than as if my wife sold the stock herself?  That is, the cost basis of the stock held can be used to determine capital gains/loss?

[tagteam]

I will page @Mike9241

[Mike9241 · Accepted solution]

it's treated no different than a normal stock sale on a public exchange. HOWEVER

don't know if 180 days has passed since the sale. if not, there is an opportunity to invest some or all of the proceeds in a Qualified Opportunity Fund (invests in QOZ) or Qualified Opportunity Zone Property.  Note these are not any safer than investing in the stock market in general (actually may be riskier because a QOZ is a population census tract that is a low-income community) but it does allow temporary postponement of the gain (no later than 12/31/2026). if this investment is held ten years post-acquisition gain is permanently excluded from income. There are other rules. I gave you a brief synopsis.   consult a financial advisor if the eligibility remains and you are interested.