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View Full Version : How is the tax reported on a merger of 2 stocks when you receive cash


Jeg17
Apr 13, 2012, 10:43 AM
Tax question for 2011 in regards to stock merger

ebaines
Apr 14, 2012, 07:21 AM
If it's cash in lieu of receiving a partial share in the newly merged company, then you treat it as if you sold that partial share, so you report a capitali gain or loss as appropriate depending on the cost basis. You should have received info regarding how your originalshares were to be converted, and an accounting of how it was done - do you have that?