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Old 10-13-2015, 06:32 PM
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Cash to Boot tax question

I'd really appreciate help with this question.

My company is in the process of being taken over. I currently own 1044 shares in my company. As part of the merger, I will receive $6.25 for each share I own in my current company, as well as 0.35 for each share in the newly formed company.

The $6525 I will receive in cash ( 1044 x $6.25) is taxed as capital gains. How do I report the $6525? The 1044 shares I own were part of my company's ESPP, and were purchased in 5 different lots, over the course of 2 and 1/2 years. What is my cost basis and what rate of CGT do I use, long term or short term?

Thanks.



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