Dell completed its merger with EMC. EMC shareholders received cash and shares of a tracking stock tied to VMWare controlled by Denali, a Dell family controlled company.
The SEC filing for this merger (Schedule 14A) was found through the SEC web site
This merger is a cash-plus-stock reorganization. All the information below is from the information available from the Schedule 14A filed with the SEC.
Instructions for Myiclub Users
Use the Merger with cash transaction.
Step 1
Step 2
Be sure to choose the option Transaction is taxable to a maximum of the cash received.
Reorganization Fee: See your broker statement
In Merger with cash transactions, realizedcapital gains and the cost basis of the new shares have a component dependent on the price per share chosen in the entry screens. In our experience brokers tend to use the price per share published by the companies on their websites in their guidance to shareholders. If the companies publish guidance with a share price, we use that share price in our instructions to minimize possible differences between the accounting records and broker information. In cases where no guidance is available, we will choose the lower of the opening or closing price on the effective date. Either of these prices is acceptable to the IRS and by choosing the lower price some realized capital gains will be deferred to a later date. However, there is always the chance the price we choose will not be the price chosen by your broker. The gain from the merger and cost basis of the new shares recorded in your accounting records will then differ from your broker information. Because of the lack of detail in the tax code, both our choice and your broker’s choices would be reasonable estimates of market value for the shares received. Your records are NOT incorrect because they differ from your broker. Tax return forms do have specific areas to report these usually small differences. Our tax printer software handles these adjustment entries automatically in the normal operation of the software.
