Over the years, my wife accumulated 418.619 shares of Nicor, Inc. In December
2011, Nicor was merged into AGL Resources (AGL). Each Nicor share was exchanged
for $21.20 in cash plus 0.8382 share o AGL. AGL shares were valued at $53 for
purposes of the merger.
In late December, she received a check for $8,910.74. (The difference was for the partial Nicor share.) and 350 shares of AGL.
Question 1: How do we report this on our 2011 return? The total cost basis of the Nicor shares was $15,575.04.
Question 2: It is likely that we will sell the AGL shares in 2012. How would that be reported? Would any gain be long term?
I queried Wells Fargo, which handled this transaction as to the tax consequences. They said to consult with our tax advisor. So here I am -- and happy to be back.
Thank you for your help.
Bill Brenner
In late December, she received a check for $8,910.74. (The difference was for the partial Nicor share.) and 350 shares of AGL.
Question 1: How do we report this on our 2011 return? The total cost basis of the Nicor shares was $15,575.04.
Question 2: It is likely that we will sell the AGL shares in 2012. How would that be reported? Would any gain be long term?
I queried Wells Fargo, which handled this transaction as to the tax consequences. They said to consult with our tax advisor. So here I am -- and happy to be back.
Thank you for your help.
Bill Brenner
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