Stock transactions reporting related to merger ?

[amyonghwee]

My company A was bought over by Company B. The merger was completed on 21 Apr 2021.
Vested shares before the merger was converted : 1 company A RSU = 2.323 company B RSUs and given $66 per company A RSU
Unvested shares before the merger was converted : 1 company A RSU = 3.6955 company B RSU.

When I was in company A, I was given RSUs. On released date 6/23/20, 43 shares was released to me and 15 shares were traded or withheld. Balance of 28 shares were assigned to me
The market value per share on release date is $114.08.

On the merger date, the 28 company A RSU was converted to 65.04 company B RSU and given cash of $1848.

On 4/20/22 (long-term) I sold the 65.04 company B shares.

How do I enter the vesting or release information ? Do I need to recompute company A vesting information ?
Total shares vested/released?
Shares withheld to pay taxes?
Market price on vesting date?

[GeorgeM777 · Accepted solution]

Given that Company A no longer exists, and your RSUs are now in Company B RSU shares, you probably should enter your RSU information as if it was always Company B RSUs.  Your grant date, vesting date, and cost basis should remain the same as it was when the RSUs were granted/vested by Company A.  The tax withholding which resulted from the sale of the 15 RSUs should be on your W-2.  Employers are required to sell shares to cover their tax withholding requirements and also include such withholding on an employee's W-2.   Thus, when you enter you W-2 information, you are also entering the withholding from the sale of the 15 RSUs, so that should not require a separate entry.  

The cash you received--$1,848--should have been included on your 2021 tax return, so that has no relevance for your 2022 return.  

Your total cost basis on the day your RSUs vested does not change.  The per share RSU price does change because you received more shares in Company B than you had in Company A and your basis did not change.  To determine your per share cost in Company B RSUs, just divide the original cost basis (28 shares x $114.08) and divide that number by the total shares of Company B RSUs, 65.04 shares.  

@amyonghwee