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Hi,
I owned CR Bard for many years and my basis is very low. In early 2017 Beckton Dickinson (BDX) offered to buyout Bard for about $230/share in cash and some shares of BDX stock. The Bard shareholders approved the deal. Throughout 2017, as regulatory approvals were being had, press releases said the transaction was expected to close in the fourth quarter of 2017. Due to the expected capital gain, I sold other things to incur a loss that would help soften the tax bill from this buyout. I also paid more in estimated taxes. The buyout finally closed on Friday, December 29, 2017. An FAQ on the BDX website said that for federal income tax purposes, Bard shareholders were treated as having exchanged their shares in the merger before the market open on 12/29/17. The FAQ also says the receipt of the merger consideration will be taxable. The buyout consideration did not appear in my brokerage account until January 2. The 1099 for 2017 from the brokerage does not report any capital gain.
The question is can I report the cap gain on my 2017 return in spite of it not being reported on a 1099? Is it worth doing so since I will receive a 1099 in 2018 which will have this cap gain on it and will have to explain I paid it in 2017? I have other LT cap gains to offset the losses I took. Thanks.
I owned CR Bard for many years and my basis is very low. In early 2017 Beckton Dickinson (BDX) offered to buyout Bard for about $230/share in cash and some shares of BDX stock. The Bard shareholders approved the deal. Throughout 2017, as regulatory approvals were being had, press releases said the transaction was expected to close in the fourth quarter of 2017. Due to the expected capital gain, I sold other things to incur a loss that would help soften the tax bill from this buyout. I also paid more in estimated taxes. The buyout finally closed on Friday, December 29, 2017. An FAQ on the BDX website said that for federal income tax purposes, Bard shareholders were treated as having exchanged their shares in the merger before the market open on 12/29/17. The FAQ also says the receipt of the merger consideration will be taxable. The buyout consideration did not appear in my brokerage account until January 2. The 1099 for 2017 from the brokerage does not report any capital gain.
The question is can I report the cap gain on my 2017 return in spite of it not being reported on a 1099? Is it worth doing so since I will receive a 1099 in 2018 which will have this cap gain on it and will have to explain I paid it in 2017? I have other LT cap gains to offset the losses I took. Thanks.