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Contact each of the companies and get their tax analysis
document for the merger. I don't know about the Hancock
merger, but I do know the Wellpoint merger was a complicated
one. The cash received may be reportable or may just adjust
your ongoing cost basis in the stock.

Ira Smilovitz

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I owned stock in two insurance companies, John Hancock and
Wellpoint Health Networks. The Hancock was aquired by
Manulife in 2004 and Wellpoint was aquired by Anthem also in
2004.

The Hancock stocks were converted to Manulife stocks so that
the entire value of the Hancock stocks were used to buy
Manulife (352 shares of Hancock converted to 316 shares of
Manulife). Only the few dollars remaining were sent to me.

The Wellpoint stocks were converted to Anthem on a per stock
basis (110 share of Wellpoint converted to 110 shares of
Anthem). In addition I was given $23.80 per share in cash.

My basis in the Hancock stock is $0. I received it in 1997.

The Wellpoint stock was purchased through an Employee Stock
Purchase Plan over several years. The first year of
purchase was 1998 the last 2001. The basis is $3369.

Exactly what do I have to report as capital gains? Short
term or long term?

Thank you.

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