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Subject Author Date
how to handle cash payment for stock pinbot2 03-21-2008
Posted by pinbot2 on March 21, 2008, 7:16 pm
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 Hi, could anyone help on the tax consequences of the cash payment
inthis message? I had 186.3908 shares of skyf and got a check
for563.46 (186.3908 x 3.023) This is part of a buyout of sky bank
byhuntington bank - they paid I received a 1099B and I am not sure
howto handle this tax wise, is the full 563.46 a capital gain? do I
putit on schedule D with a cost of zero ? see this website it gives
someother numbers, but they don't really give me a calculation. Maybe
Iam making this harder than it is, but I need to know the
properhandling of this. Here is the all the text they give you about
thebuyout :Under the terms of the agreement, Sky Financial Group
shareholderswill receive 1.098 shares of Huntington common stock, on a
tax-freebasis, and a taxable cash payment of $3.023 for each share of
SkyFinancial Group. Based on the $24.77 closing price of
Huntington'scommon stock on December 19, 2006, the transaction values
each shareof Sky Financial Group common stock at $30.22, a 25% premium
to itsclosing price of $24.17. Thanks

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Posted by DF2 on March 21, 2008, 7:52 pm
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 In misc.taxes.moderated, pinbot2 wrote:

>Hi, could anyone help on the tax consequences of the cash payment
>inthis message? I had 186.3908 shares of skyf and got a check
>for563.46 (186.3908 x 3.023) This is part of a buyout of sky bank
>byhuntington bank - they paid I received a 1099B and I am not sure
>howto handle this tax wise, is the full 563.46 a capital gain? do I
>putit on schedule D with a cost of zero ? see this website it gives
>someother numbers, but they don't really give me a calculation. Maybe
>Iam making this harder than it is, but I need to know the
>properhandling of this. Here is the all the text they give you about
>thebuyout :Under the terms of the agreement, Sky Financial Group
>shareholderswill receive 1.098 shares of Huntington common stock, on a
>tax-freebasis, and a taxable cash payment of $3.023 for each share of
>SkyFinancial Group. Based on the $24.77 closing price of
>Huntington'scommon stock on December 19, 2006, the transaction values
>each shareof Sky Financial Group common stock at $30.22, a 25% premium
>to itsclosing price of $24.17. Thanks


http://fairmark.com/forum/read.php?3,27646,27727 looks like a
possibly-relevant read.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by joetaxpayer on March 21, 2008, 8:35 pm
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DF2 wrote:
> In misc.taxes.moderated, pinbot2 wrote:
>
>
>>Hi, could anyone help on the tax consequences of the cash payment
>>inthis message? I had 186.3908 shares of skyf and got a check
>>for563.46 (186.3908 x 3.023) This is part of a buyout of sky bank
>>byhuntington bank - they paid I received a 1099B and I am not sure
>>howto handle this tax wise, is the full 563.46 a capital gain? do I
>>putit on schedule D with a cost of zero ? see this website it gives
>>someother numbers, but they don't really give me a calculation. Maybe
>>Iam making this harder than it is, but I need to know the
>>properhandling of this. Here is the all the text they give you about
>>thebuyout :Under the terms of the agreement, Sky Financial Group
>>shareholderswill receive 1.098 shares of Huntington common stock, on a
>>tax-freebasis, and a taxable cash payment of $3.023 for each share of
>>SkyFinancial Group. Based on the $24.77 closing price of
>>Huntington'scommon stock on December 19, 2006, the transaction values
>>each shareof Sky Financial Group common stock at $30.22, a 25% premium
>>to itsclosing price of $24.17. Thanks
>
>
>
> http://fairmark.com/forum/read.php?3,27646,27727 looks like a
> possibly-relevant read.

Or start on p64 of
http://www.investquest.com/iq/h/hban/fin/proxy/hbanx07.pdf

I have to say, they could have done a better job spelling out the
consequences of this transaction.
Joe
www.joetaxpayer.com

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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