schedule d question for company buyout


Z

zikester

I purchased stock in a NYSE-traded company A that was later bought out
by another NYSE-traded company B. In the process, company A's shares
were converted to company B's shares.

1) When I sell my shares in company B, how do I notate that there was
a conversion of stock?
2) How can I verify what the actual conversion rate was? The
conversion happened in 2004.
3) Do I need to provide official documentation in my tax return to
substantiate that conversion rate?

Thanks!

Isaac
 
Ad

Advertisements

A

Arthur Kamlet

I purchased stock in a NYSE-traded company A that was later bought out
by another NYSE-traded company B. In the process, company A's shares
were converted to company B's shares.

1) When I sell my shares in company B, how do I notate that there was
a conversion of stock?
2) How can I verify what the actual conversion rate was? The
conversion happened in 2004.
3) Do I need to provide official documentation in my tax return to
substantiate that conversion rate?

If you simply traded in your shares of A for shares of B, the total
cost basis and acquisition date of B is the same as for A. This assumes
the company has a ruling that this was a tax free exchange.



If you received cash as part of the deal, it is more complicated and
contact the company for information on figuring your cost basis and
gain/loss on A.


As for record keeping, save the information they sent you. No need
to send it to the IRS unless they ask.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads


Top