how to handle cash payment for stock

Mar 21, 2008 2 Replies

Hi, could anyone help on the tax consequences of the cash payment inthis message? I had 186.3908 shares of skyf and got a check for563.46 (186.3908 x 3.023) This is part of a buyout of sky bank byhuntington bank - they paid I received a 1099B and I am not sure howto handle this tax wise, is the full 563.46 a capital gain? do I putit on schedule D with a cost of zero ? see this website it gives someother numbers, but they don't really give me a calculation. Maybe Iam making this harder than it is, but I need to know the properhandling of this. Here is the all the text they give you about thebuyout :Under the terms of the agreement, Sky Financial Group shareholderswill receive 1.098 shares of Huntington common stock, on a tax-freebasis, and a taxable cash payment of $3.023 for each share of SkyFinancial Group. Based on the $24.77 closing price of Huntington'scommon stock on December 19, 2006, the transaction values each shareof Sky Financial Group common stock at $30.22, a 25% premium to itsclosing price of $24.17. Thanks


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looks like apossibly-relevant read.

Or start on p64 of

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I have to say, they could have done a better job spelling out the consequences of this transaction. Joe
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