schedule d question for company buyout

Discussion in 'US Taxes' started by zikester, Oct 3, 2008.

  1. zikester

    zikester Guest

    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?


    zikester, Oct 3, 2008
    1. Advertisements

  2. 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.
    Arthur Kamlet, Oct 3, 2008
    1. Advertisements

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 (here). After that, you can post your question and our members will help you out.