Merger of Current Investment

[George B]

Looking for the best way to handle an acquisition of a current investment by a a competitor.

The acquisition of the company I currently own was in cash and stock. I could record the sale of the current investment at the closing price on the day prior to the acquisition then calculate the dollars left after subtracting the cash in lieu and that would be the total cost of the new company shares.

Is this a best way to record this in Fund Manager or is there a better way?

Thanks

George

[Mark]

Hi George,

Was this a taxable event, where you have to report realized gains? If not, you might just record this:

1) Distribution for amount of cash
2) Split with the ratio of <new shares> for <old shares>
3) Change investment name/symbol/cusip

Another option is:

1) Distribution for amount of cash
2) Use the "Transfer Between" wizard to transfer shares from old to new investment

[George B]

Thanks for your response Mark. Yes at least part of it will be taxable since it is not held in a tax deferred retirement account.

George

[Mark]

Hi George,

It depends on the details then of how/what is taxed on how you would record this.

[George B]

Thanks again for your response Mark. I will have to be patient until the matter is settled. Getting rulings from the IRS sometimes takes time.

George