Greetings,

Because of some mixups with my broker, I didn't get a 1099
until recently. Anyway, I'm wondering how to account for
the AVE SNY merger. We had 7 shares of AVE and received 16
of SNY. We also received some cash in lieu of fractional
shares.

The odd parts about the merger are 1) my statement from the
broker says the merger occured in 2005 (1/3/05), but we
received a 1099 showing action in 2004 (12/31). 2) The 1099
reports that the AVE shares were SOLD in 2004, even though
this was a merger.

So, do I run the merger through in 2004 as I normally would
and forget about the supposed SALE, or do I show a sale and
purchase. There will be a small ($100) capital gain if I
show a sale.

I've signed up for Club Accounting (our normal sub expired
so I thought CA would help) but I don't know if it handles
things in the past.

HELP???

HuskerPlus

Edward J Gowlovech wrote:
> Greetings,
>
> Because of some mixups with my broker, I didn't get a 1099
> until recently. Anyway, I'm wondering how to account for
> the AVE SNY merger. We had 7 shares of AVE and received 16
> of SNY. We also received some cash in lieu of fractional
> shares.
>
> The odd parts about the merger are 1) my statement from the
> broker says the merger occured in 2005 (1/3/05), but we
> received a 1099 showing action in 2004 (12/31). 2) The 1099
> reports that the AVE shares were SOLD in 2004, even though
> this was a merger.
>
> So, do I run the merger through in 2004 as I normally would
> and forget about the supposed SALE, or do I show a sale and
> purchase. There will be a small ($100) capital gain if I
> show a sale.
>
> I've signed up for Club Accounting (our normal sub expired
> so I thought CA would help) but I don't know if it handles
> things in the past.
>
> HELP???
>
> HuskerPlus


The way I understood this was that the IRS taxes
international mergers based on the date of approval. The
merger was approved in 2004 but not finished until 2005.
Therefore, the taxabiltiy of the merger is in 2004.

Since it is a taxable merger, the Aventis shares are
considered sold and I would show this as a sale in bivio.
The basis of the Sanofi shares would be your sales price for
Aventis plus any service charges you broker may have
charged. The only problem is I'm not sure when you date of
aquisition would be for Sanofi. If date of sale, I would
enter it like that into bivio. If the original date, I'm
not sure how to enter into bivio as I would think there
could be a problem with previous reporting.

This is my understanding, someone else please correct me if
I got it wrong.