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#2
09-21-2005, 06:32 AM
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 Re: Mandatory stock exchange considered sale? "Etienne" <etiennevb[at]hotmail.com> writes: - quote - > I had some stock in a company that was acquired and
Probably not, but it depends on the exact structure of the> privatized by another public company. > In return for my stocks, I got stocks in the acquiring > company plus some cash for the fractional shares. > This was a mandatory exchange. > Is this exchange considered a stock sale for tax purposes? sale. What did the shareholder documents about the merger say? Did they say things like "this is going to be a tax-free reorganization"? - quote - > What would be the sales price? The value of my new stock
If it's a standard tax-free merger, there is no sale (aside> at the date of transfer plus the cash? from the sale of the fractional share) and your basis and holding period in the new stock is your basis and holding period in the original stock. -- Rich Carreiro rlcarr[at]animato.arlington.ma.us << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#1
09-21-2005, 06:32 AM
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| Re: Mandatory stock exchange considered sale? Etienne <etiennevb[at]hotmail.com> wrote: - quote - > I had some stock in a company that was acquired and
Not in most cases.> privatized by another public company. > In return for my stocks, I got stocks in the acquiring > company plus some cash for the fractional shares. > This was a mandatory exchange. > Is this exchange considered a stock sale for tax purposes? You were probably given a gigantic disclosure document during the sale. Buried in there is probably an attorney's opinion that this is a tax-free exchange. Steve << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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09-21-2005, 06:32 AM
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| Re: Mandatory stock exchange considered sale? "Etienne" <etiennevb[at]hotmail.com> wrote: - quote - > I had some stock in a company that was acquired and
Depends on the precise facts and circumstances, but there's> privatized by another public company. > In return for my stocks, I got stocks in the acquiring > company plus some cash for the fractional shares. > This was a mandatory exchange. > Is this exchange considered a stock sale for tax purposes? a good chance the transaction is exempt from recognition under IRS §354. Stu << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#-1
09-20-2005, 07:44 PM
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| Mandatory stock exchange considered sale? I had some stock in a company that was acquired and privatized by another public company. In return for my stocks, I got stocks in the acquiring company plus some cash for the fractional shares. This was a mandatory exchange. Is this exchange considered a stock sale for tax purposes? What would be the sales price? The value of my new stock at the date of transfer plus the cash? Thanks, Etienne << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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| considered, exchange, mandatory, sale, stock |
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