“del datetime=”2020-03-06T03:00:18+00:00”>The fair market value of the Celgene stock was $34,569.60 on 11/21/19. The cost basis was $4117.85.
After Bristol Myers Squibb acquired Celgene, the fair market value of the Bristol Myers Squibb stock was $18,220.80 on 11/21/19.
The cost basis was $1,7880.
I received $16,000 in cash as a result of the merger.
How do I compute my tax liability?”
I got a result similar (but lower) than the broker using your #s above.
From the SEC definition of gain = Cash + FMV BMY + FMV CVRs minus Celgene
cast basis = 16000 + 18221 + FMV CVR (???) – 4118 = 30103 which is similar to but lower than the broker result 0f 30669. I didn’t know anything about any CVRs here and if they added any more value but the broker value
of 34787 after the merger is different than the 34221 from the numbers you gave.
What do you think the gain should be? I would be inclined to use the broker numbers. btw I know how painful a fully taxable merger is………usually mergers are tax free or you might pay taxes on the cash but a fully taxable merger is another animal esp when it takes you by surprise…..you can check out HPE/Seattle Spinworks/Microfocus INTL for my surprise of about the same size.
- This reply was modified 2 years, 3 months ago by kaneohe.