Anheuser-Busch buyout
I have a client that has significant holdings in bud stock. If the buyout takes place at the end of November can he hold on to the shares until 1/2/09 and pay for taxes on the appreciation on 4/15/10?
I have a client that has significant holdings in bud stock. If the buyout takes place at the end of November can he hold on to the shares until 1/2/09 and pay for taxes on the appreciation on 4/15/10?
Permalink Submitted by Al Fry on Thu, 2008-11-13 19:43
I do, as well, except mine is in brown bottles!
Permalink Submitted by Alan Spross on Fri, 2008-11-14 05:31
It depends on the terms of the buyout. If you receive cash, the cash is taxable in the year received. If you get cash in lieu of partial shares, the amount is usually so small that you show no basis on Sch D. But you could assign the small amount of your pro rated basis to the cash if you wanted to go through the math, and then reduce your basis for the shares you receive by that small amount.