Ira,
Thanks for you help with this. It's alot of information to
digest but I'll just have to re-read it several times.
Thank you for you examples.

-Jay


IraS1@aol.com wrote:
> >>I know the Reorginization has happened
> awhile ago but our
> club is several months behind as the previous treasurer
> quit
> doing his job and didn't let anyone know.
> Question is:  We have
> (had) 134 shares of Nextel and now
> according to Ameritrade, we have 169
> shares of Sprint.
>
> >>How do I enter this into Bivio??  Do I use
> the Merger
> button??
>  
> This is not a straightforward merger. You must do some manual calculations
> before you can enter anything. The cash you received may be taxable as a capital
> gain or it may be a return of capital or both. If capital gain, it may be
> short-term, long-term or both.
>  
> This event involves 3 or 4 transactions:
>     1) The
> merger
>     2) A Return of Capital from Sprint-Nextel
> and/or
>     3) A Capital
> Gain
>     4) Reorganization fee
>
> Information you need:
>     Your
> information
>         The total cost of
> your Nextel
> stock.  
>         The number
> of Nextel shares you owned prior to 8/12/05.
>     Company
> information
>         You received
> $0.84629198 in cash for each Nextel
> share
>         You received 1.26750218
> shares of Sprint-Nextel Corp for each Nextel
> share
>         Nextel traded at $33.32
> on 8/12/05.
>         Sprint traded at
> $26.15 on 8/12/05.
>  
> Enter the Merger on 8/12/05.
> Owners of Nextel receive
> 1.26750218 shares of Sprint-Nextel Corp for each share of Nextel that they
> own.  
>     Ticker: (I don't remember Nextel's
> old ticker)
>     Acquiring Ticker: S (the new ticker symbol for
> Sprint-Nextel)
>     Transaction date:
> 8/12/05
>     Shares: the exact number of Nextel shares you
> owned * 1.26750218
>     Cash Received: Fractional share * price that day
> [use the cash reported by the broker as the broker may have sold the fractional
> share at a different price. This may be reported by the broker several days
> after the merger date.] NOTE: THIS DOES NOT INCLUDE THE $0.84629198 cash
> received for each share of Nextel.
>     Account: your
> choice, usually Broker.
>  
>
> Next,  determine how to report the cash
> received.
>
>  
> You need to calculate three amounts: the amount of cash received (before
> the sale of any fractional shares), the value of the Sprint-Nextel shares
> received in the merger (before the sale of any fractional shares), and the total
> consideration received in the merger (the sum of the value of Sprint-Nextel
> shares and cash received, both before the sale of any fractional
> shares).
>
> Let's break this down with an example:
> Assume you have 100 shares of
> Nextel.
> You received $84.629198 and 126.750218 shares of
> Sprint-Nextel.
> The value of the Sprint-Nextel stock received is 126.750218 *
> $26.15 = $3,314.52
> The total consideration received in the merger is $84.63 +
> $3,314.52 = $3,399.15.
>
> One of the following three conditions will be true, follow the instructions
> for that condition:
>     a) The value of
> Sprint-Nextel stock received is greater than the total cost of Nextel stock
> owned. (capital gain)
>     b) The total consideration
> received (value of Sprint-Nextel stock plus cash received) is less than the
> total cost of Nextel stock owned. (return of
> capital)
>     c) Neither a) nor b) is true. (part
> capital gain/part return of capital)
>  
> a) If the value of the Sprint-Nextel stock received is higher than the
> total cost of Nextel, then all of the cash received is reported as a capital
> gain distribution.  Let’s break this down with an example:
>  
> Assume the total cost for your 100 shares of Nextel was $3,300. 
>
> The value of the Sprint-Nextel stock received is $3,314.52.
> The value of
> the Sprint-Nextel stock received is higher than the total cost, so all of the
> cash received ($84.63) is reported as a capital gain distribution. 
>
>
> To enter the Short Term (less than one year) or Long Term (over one year)
> Capital Gain enter an Investment Income transaction:
>     Ticker: (whatever the old Nextel ticker was)
>     Transaction Date: 8/12/05
>     Distribution Type: Long-term capital gain or
> Short-term capital gain based on holding period of the block of Nextel
> stock
>     Ex-Dividend Date: (leave blank)
>     Gross Amount: Number of shares of Nextel *
> $0.84629198
>     Account: your choice, usually
> broker
>  
> b) If the total consideration received (value of Sprint-Nextel stock
> plus cash received) is less than the total cost of Nextel stock, then all the
> cash received is reported as a Return of Capital. Here's an example:
>
> Assume your total cost for your Nextel stock was $3,450.
> The total
> consideration received in the merger is $84.63 + $3,314.52 = $3,399.15.
> The
> total consideration received is higher than the total cost, so all of the cash
> received ($84.63) is reported as a return of capital distribution. 
>
>
> To enter the Return of Capital enter an Investment Income
> transaction:
>     Ticker: (whatever the old Nextel ticker was)
>     Transaction Date: 8/12/05
>     Distribution Type: Return of Capital
>     Ex-Dividend Date: (leave blank)
>     Gross Amount: Number of shares of Nextel *
> $0.84629198
>     Account: your choice, usually
> broker
>  
> c) If neither a) nor b) applies to you, then part of the cash you received
> will be reported as a capital gain and part as a return of capital.
>
> Assume your total cost for your Nextel stock was $3,350.
> The value of
> the Sprint-Nextel stock received is 126.750218 * $26.15 = $3,314.52
> The total
> consideration received in the merger is $84.63 + $3,314.52 = $3,399.15.
> The
> difference between the total consideration received and the total cost of your
> Nextel stock is reported as capital gain distribution from Sprint-Nextel
> ($3,399.15 - $3,350 = $49.15)
> The difference between the total cost of your
> Nextel stock and the value of the Sprint-Nextel stock received is reported as a
> return of capital from Sprint-Nextel ($3,350 - $3,314.52 = $35.48)
>
> Finally, enter the Reorganization fee, also on
> 8/12/05.
> If the broker charged you a reorganization fee, enter that
> as a negative Return of Capital.
>
>  
> To enter the Return of Capital enter an Investment Income
> transaction:
>     Ticker: S
>     Transaction Date: 8/12/05
>     Distribution Type: Return of Capital
>     Ex-Dividend Date: (leave blank)
>     Gross Amount: the reorganization fee, but entered
> as a negative number (a $20 fee would be entered as
> -$20).
>     Account: your choice, usually broker
>  
> Note: For the purposes of steps 1-3, you should treat each block of
> Nextel stock you owned separately from the others. Some may get one treatment,
> while others may get another. The reorganization fee (if any) can be entered in
> a single transaction after all the other merger related transactions are
> entered.
>  
> Ira Smilovitz

Ira, this explanation was very helpful to me in trying to
figure out how to handle the Nextel/Sprint payment we
received from the merger. I followed your step by step
instructions and was able to figure out that our 36.79
payment should be classified as a capital gain distribution,
but there were no instructions for determining which portion
is long-term and which is short-term. Some of our stock was
held for over a year and different amounts were bought and
sold within a year. I could really use your advice. Thanks!
Amy Fast

IraS1@aol.com wrote:
> >>I know the Reorginization has happened
> awhile ago but our
> club is several months behind as the previous treasurer
> quit
> doing his job and didn't let anyone know.
> Question is: We have
> (had) 134 shares of Nextel and now
> according to Ameritrade, we have 169
> shares of Sprint.
>
> >>How do I enter this into Bivio?? Do I use
> the Merger
> button??
>
> This is not a straightforward merger. You must do some manual calculations
> before you can enter anything. The cash you received may be taxable as a capital
> gain or it may be a return of capital or both. If capital gain, it may be
> short-term, long-term or both.
>
> This event involves 3 or 4 transactions:
> 1) The
> merger
> 2) A Return of Capital from Sprint-Nextel
> and/or
> 3) A Capital
> Gain
> 4) Reorganization fee
>
> Information you need:
> Your
> information
> The total cost of
> your Nextel
> stock.
> The number
> of Nextel shares you owned prior to 8/12/05.
> Company
> information
> You received
> $0.84629198 in cash for each Nextel
> share
> You received 1.26750218
> shares of Sprint-Nextel Corp for each Nextel
> share
> Nextel traded at $33.32
> on 8/12/05.
> Sprint traded at
> $26.15 on 8/12/05.
>
> Enter the Merger on 8/12/05.
> Owners of Nextel receive
> 1.26750218 shares of Sprint-Nextel Corp for each share of Nextel that they
> own.
> Ticker: (I don't remember Nextel's
> old ticker)
> Acquiring Ticker: S (the new ticker symbol for
> Sprint-Nextel)
> Transaction date:
> 8/12/05
> Shares: the exact number of Nextel shares you
> owned * 1.26750218
> Cash Received: Fractional share * price that day
> [use the cash reported by the broker as the broker may have sold the fractional
> share at a different price. This may be reported by the broker several days
> after the merger date.] NOTE: THIS DOES NOT INCLUDE THE $0.84629198 cash
> received for each share of Nextel.
> Account: your
> choice, usually Broker.
>
>
> Next, determine how to report the cash
> received.
>
>
> You need to calculate three amounts: the amount of cash received (before
> the sale of any fractional shares), the value of the Sprint-Nextel shares
> received in the merger (before the sale of any fractional shares), and the total
> consideration received in the merger (the sum of the value of Sprint-Nextel
> shares and cash received, both before the sale of any fractional
> shares).
>
> Let's break this down with an example:
> Assume you have 100 shares of
> Nextel.
> You received $84.629198 and 126.750218 shares of
> Sprint-Nextel.
> The value of the Sprint-Nextel stock received is 126.750218 *
> $26.15 = $3,314.52
> The total consideration received in the merger is $84.63 +
> $3,314.52 = $3,399.15.
>
> One of the following three conditions will be true, follow the instructions
> for that condition:
> a) The value of
> Sprint-Nextel stock received is greater than the total cost of Nextel stock
> owned. (capital gain)
> b) The total consideration
> received (value of Sprint-Nextel stock plus cash received) is less than the
> total cost of Nextel stock owned. (return of
> capital)
> c) Neither a) nor b) is true. (part
> capital gain/part return of capital)
>
> a) If the value of the Sprint-Nextel stock received is higher than the
> total cost of Nextel, then all of the cash received is reported as a capital
> gain distribution. Let’s break this down with an example:
>
> Assume the total cost for your 100 shares of Nextel was $3,300.
>
> The value of the Sprint-Nextel stock received is $3,314.52.
> The value of
> the Sprint-Nextel stock received is higher than the total cost, so all of the
> cash received ($84.63) is reported as a capital gain distribution.
>
>
> To enter the Short Term (less than one year) or Long Term (over one year)
> Capital Gain enter an Investment Income transaction:
> Ticker: (whatever the old Nextel ticker was)
> Transaction Date: 8/12/05
> Distribution Type: Long-term capital gain or
> Short-term capital gain based on holding period of the block of Nextel
> stock
> Ex-Dividend Date: (leave blank)
> Gross Amount: Number of shares of Nextel *
> $0.84629198
> Account: your choice, usually
> broker
>
> b) If the total consideration received (value of Sprint-Nextel stock
> plus cash received) is less than the total cost of Nextel stock, then all the
> cash received is reported as a Return of Capital. Here's an example:
>
> Assume your total cost for your Nextel stock was $3,450.
> The total
> consideration received in the merger is $84.63 + $3,314.52 = $3,399.15.
> The
> total consideration received is higher than the total cost, so all of the cash
> received ($84.63) is reported as a return of capital distribution.
>
>
> To enter the Return of Capital enter an Investment Income
> transaction:
> Ticker: (whatever the old Nextel ticker was)
> Transaction Date: 8/12/05
> Distribution Type: Return of Capital
> Ex-Dividend Date: (leave blank)
> Gross Amount: Number of shares of Nextel *
> $0.84629198
> Account: your choice, usually
> broker
>
> c) If neither a) nor b) applies to you, then part of the cash you received
> will be reported as a capital gain and part as a return of capital.
>
> Assume your total cost for your Nextel stock was $3,350.
> The value of
> the Sprint-Nextel stock received is 126.750218 * $26.15 = $3,314.52
> The total
> consideration received in the merger is $84.63 + $3,314.52 = $3,399.15.
> The
> difference between the total consideration received and the total cost of your
> Nextel stock is reported as capital gain distribution from Sprint-Nextel
> ($3,399.15 - $3,350 = $49.15)
> The difference between the total cost of your
> Nextel stock and the value of the Sprint-Nextel stock received is reported as a
> return of capital from Sprint-Nextel ($3,350 - $3,314.52 = $35.48)
>
> Finally, enter the Reorganization fee, also on
> 8/12/05.
> If the broker charged you a reorganization fee, enter that
> as a negative Return of Capital.
>
>
> To enter the Return of Capital enter an Investment Income
> transaction:
> Ticker: S
> Transaction Date: 8/12/05
> Distribution Type: Return of Capital
> Ex-Dividend Date: (leave blank)
> Gross Amount: the reorganization fee, but entered
> as a negative number (a $20 fee would be entered as
> -$20).
> Account: your choice, usually broker
>
> Note: For the purposes of steps 1-3, you should treat each block of
> Nextel stock you owned separately from the others. Some may get one treatment,
> while others may get another. The reorganization fee (if any) can be entered in
> a single transaction after all the other merger related transactions are
> entered.
>
> Ira Smilovitz