Our club owned 100 shares of Barr Labs (BRL). On 12/23/08
Teva Pharmaceuticals (TEVA) aquired Barr Labs. We received
62 shares of TEVA and $3990.00. There was also a $20.00 fee
associated with the transaction at ETrade. How do I enter
this transaction in bivio? Is it taxable?
Thanks

http://www.tevapharm.com/pdf/TevaBarrMergerFAQShareholders.pdf has two
examples of calculating gain/loss and tax basis for this "reorganization".

http://www.iclub.com/support/kb/default.asp?page=kb_1284 is an example (for
different stocks) of handling this sort of reorganization in the context of
club accounting software.

The details of entering this transaction for your specific situation depend
on the tax basis and purchase date of your BRL shares (and whether you
bought them all at once or in separate blocks). You will have some
combination of long-term capital gain, short-term capital gain and return of
capital transactions in addition to a merger transaction. The $20
reorganization fee can be entered as a separate return of capital
transaction (with the amount entered as *negative* $20).

In addition to what you listed below, you should have received cash in lieu
of 0.72 shares of TEVA. My preference is to account for that cash by
entering a separate sale of 0.72 shares, but others prefer to account for
the cash in lieu as part of the merger transaction.

-Jim Thomas

> Our club owned 100 shares of Barr Labs (BRL).
> On 12/23/08 Teva Pharmaceuticals (TEVA)
> aquired Barr Labs. We received 62 shares of
> TEVA and $3990.00. There was also a $20.00
> fee associated with the transaction at ETrade.
> How do I enter this transaction in bivio?
> Is it taxable?
> Thanks