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Old 03-21-2014, 12:08 AM
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Date of Stock Purchase

I am sure this addressed somewhere but I can't find it anywhere.

I purchased a stock in July 2010, but the company was acquired by another company in August 2013. It was an all stock deal (0.3 shares of new company). I sold the stock in September 2013.

Is my acquisition date for capital gains purposes July 2010 (long term) when I bought the original stock, or August 2013 (short term) when I acquired the stock of the new company?

Thank you.


Last edited by mikephx85072 : 03-21-2014 at 12:10 AM. Reason: Made a mistake with years


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Old 03-21-2014, 08:19 AM
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Join Date: Oct 2010
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Quote:
Originally Posted by mikephx85072 View Post

Is my acquisition date for capital gains purposes July 2010 (long term) when I bought the original stock, or August 2013 (short term) when I acquired the stock of the new company?

Thank you.
I guess aug 2013; the acquiring company will usually offer you an offer ,either in stocks of the newly-combined company, or in cash. Usually, the shareholders of the acquired company profit out of the deal, as the acquiring company typically pays a premium to acquire the company.



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