Home Page link  

Stock merger tax consequences

  
Groups | Search | About
User Password
Register Now! Lost Password?

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated)

 Post an article  get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
Stock merger tax consequences rlsusenet@NOSPAMPUHLEEZschnapp 11-28-2007
Posted by rlsusenet@NOSPAMPUHLEEZschnapp on November 28, 2007, 12:37 pm
Please log in for more thread options
 Any pointers on how to treat the outcome of a merger?

I owned (long term) shares of GSF, which merged with Transocean (RIG),
resulting in shares of RIG plus some cash.

Can anyone offer pointers on how to treat the transaction from a tax
standpoint? How do I determine:

1) How much of the cash is capital gain?

2) What's my basis in the new stock?

(I really ought to have stayed on top of this, selling off the stock
before the transaction took place!)


Posted by Phil Marti on November 28, 2007, 1:08 pm
Please log in for more thread options
> Any pointers on how to treat the outcome of a merger?

Not only pointers, but exact instructions.

You'll find them in the paperwork that you ignored during the merger
process. In that paperwork you'll find the information about the tax
treatment of the transaction for shareholders of both corporations.

If you can't find your copy, investor relations at the surviving company
should be able to help.

--
Phil Marti
Clarksburg, MD


Posted by Bruce E. Cobern on November 28, 2007, 7:57 pm
Please log in for more thread options

> Any pointers on how to treat the outcome of a merger?
>
> I owned (long term) shares of GSF, which merged with Transocean
> (RIG), resulting in shares of RIG plus some cash.
>
> Can anyone offer pointers on how to treat the transaction from
> a tax standpoint? How do I determine:

You will receive information in the mail which details the tax
treatment of the transaction. Since the transaction was only
effective yesterday it is a little early to find that
information. I checked the Transocean website and the
announcement of the closing of the deal is there, but not the tax
consequences.


--
Bruce E. Cobern, CPA
mailto:bec@pipeline.com



Posted by rlsusenet@NOSPAMPUHLEEZschnapp on November 28, 2007, 11:26 pm
Please log in for more thread options
Bruce E. Cobern wrote:
>> Any pointers on how to treat the outcome of a merger?
>>
>> I owned (long term) shares of GSF, which merged with Transocean
>> (RIG), resulting in shares of RIG plus some cash.
>>
>> Can anyone offer pointers on how to treat the transaction from
>> a tax standpoint? How do I determine:
>
> You will receive information in the mail which details the tax
> treatment of the transaction. Since the transaction was only
> effective yesterday it is a little early to find that
> information. I checked the Transocean website and the
> announcement of the closing of the deal is there, but not the tax
> consequences.

Yeah, I checked there too, before posting here. I've tried emailing
Investor Relations.


Posted by Ira Smilovitz on November 29, 2007, 1:39 pm
Please log in for more thread options

> Any pointers on how to treat the outcome of a merger?
>
> I owned (long term) shares of GSF, which merged with Transocean (RIG),
> resulting in shares of RIG plus some cash.
>
> Can anyone offer pointers on how to treat the transaction from a tax
> standpoint? How do I determine:
>
> 1) How much of the cash is capital gain?
>
> 2) What's my basis in the new stock?
>
> (I really ought to have stayed on top of this, selling off the stock
> before the transaction took place!)

The tax consequences were laid out in the prospectus you received before the
merger took place. It can be found at the Transocean website under SEC
filings. You're looking for the DEFM14A filing of 10/03/07. This merger is a
real can of worms. There is an unsettled question as to whether RIG
reorganized or recapitalized immediately prior to the merger. The answer
could affect your treatment of the transaction. Details can be found
beginning on page 104 of the prospectus.

Ira Smilovitz



Similar ThreadsPosted
Include Merger Documentation with Return? April 4, 2008, 1:33 pm
Tax Consequences of Foreclosure April 2, 2008, 1:12 am
IRA to Roth IRA tax consequences October 20, 2008, 9:53 pm
Tax consequences of family loan? September 20, 2007, 10:46 pm
Citizenship via Grandparents - Tax Consequences March 19, 2008, 1:18 pm
Re: Citizenship via Grandparents - Tax Consequences March 19, 2008, 4:56 pm
Gift Tax Consequences for 529 Accounts November 20, 2008, 2:56 pm
interest debt forgiveness tax consequences November 8, 2006, 2:44 am
Liquidating a 6 year old Roth IRA -- any tax consequences? November 24, 2006, 11:34 pm
Recession, tax consequences & loss carryover - HELP! January 13, 2008, 4:15 pm

Contact Us | Privacy Policy
This site is not affiliated with Intuit - makers of Quickbooks and Quicken software
This site is not affiliated with Sage Software - makers of Peachtree accounting software
XML SitemapXML Sitemap