Hi - This is more for planning purposes. I have stock of the company A (holding for >2yrs) going through an acquisition by company B and the stock will be swapped with company B's stock. Is the new stock of company B considered as long-term and taxed accordingly if I plan to sell it within 1 year of the acquisition?
TIA!
01470
1 Replies
ErnieS0
Expert Alumni
Apr 10, 2022 6:44:21 AM
It depends. Most mergers are structured as tax free exchanges. The cost and holding period of your old shares will be the same as your new shares.
However, your acquisition may be structured differently. Consult the plan documents.