club_cafe: ADVP/CMX Merger
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club_cafe: ADVP/CMX Merger I stand corrected. My only previous experience is with stock mergers where there is a fractional share cash payment. Thanks for the education. I do learn from and continue to appreciate the honest and lively exchange of ideas in the Bivio Sphere. JM -----Original Message----- From: Rip West [mailto:ripwest@yahoo.com] Sent: Wednesday, April 07, 2004 7:05 PM To: The Club Cafe Subject: Re: club_cafe: ADVP/CMX Merger << If you use a broker, you will receive a statement that outlines the transaction, including any cash in lieu. >> The broker doesn't supply the information, the involved companies do. << I don't see the need for any mathematical calculations regarding gains if you did not sell any shares. >> Well, I'm sorry that you don't see the need, and thus disagree with the IRS and me<g>. The fact remains that if you receive cash in a merger transaction, it is taxable to the extent of the lessor of the total gain or cash received. You have to make mathematical calculations to determine the amount of the gain. << I have recorded several mergers and spin offs in Bivio. They are pretty simple. >> Yes, they are if no cash is involved and they are tax free. However, they can also be quite complicated. Try a search in bivio on 'merger' and you will find examples of complicated ones, where [gasp] you will have to make mathematical computations. BTW, the tax consequences that I outlined are included in the bowels of certain SEC filings that CMX filed back in February. Rip |
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