Stock merger impact on NUA
Last year KCS was merged into Canadian Pacific Railway. Shareholders received shares of CPRL and cash.
If the KCS was originally set up using NUA rules how is the cash the shareholder treated? It looks like the actual shares of CPRL will use the basis of the KCS.
Any thoughts?
Permalink Submitted by Alan - IRA critic on Mon, 2022-03-14 02:17
If a 1099B was received for the cash, a small sale of a fractional share of the CPRL (now NUA shares) would have to be reported as LT gain. The firm handling the merger should provide detailed instructions.