we received additional stock along with a cash payment for a
merger.  The cash payment was not for fractional shares.
How do I report the cash payment on my 2004 club return.
Not sure if I adjust my cost basis by amt of cash payment or
if I report it as income??

It's impossible for anyone to tell you without more information. Cash and stock mergers are the most difficult to deal with. You must follow the instructions provided by the companies involved to determine how much, if any, of the cash is reportable gain or whether it is just a return of capital. In order for anyone to give you any guidance, we would need to know the companies involved, the number of shares of the original company and their cost basis, the number of shares of the new company received and their value on the merger date, and the cash received.

 

Ira Smilovitz