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Merger of BEAV w/ COL
6 posts
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Hi Mark, ran into a merger not sure how to transact w/ FM. BEAV was sold to Rockwell collins for 34.10 per share in cash and .3101 shares of COL for every share of BEAV. Transaction is totally taxable. I recieved 920.70 in cash and 8 shares of COL for my 27 shares of BEAV. Fractional shares will be sold. Any suggestions. Frank
Hi Frank,
Record a distribution for the $920. I assume you don't pay taxes as if you sold the BEAV, right? If that is correct, just record a split with a ratio of <new_shares> for <old_shares>. The <new_shares> should include any fractional shares you received. Record a sell for any fractional shares sold. Change the name/symbol property of the investment.
my understanding is BEAV is sold with old cost basis, COL has new cost basis as of the close of the deal so no carry over of basis. Frank
You might check with your broker for details. If BEAV is treated as sold, what would you use for cost basis for COL?
They gave a cost basis per share of COL of 97.99 per share. How does this change your instructions since BEAV is sold completely and COL has a new cost basis. Frank
Hi Frank,
If you want to record your BEAV shares as sold, so you pay Capital Gains on the sale of all shares, record a sell of BEAV for all the shares, and record a buy of COL for the desired cost basis. No split or partial share sell is necessary if you choose to record it this way.
6 posts
• Page 1 of 1
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