Quanex Merger/SpinOff

Good Morning,

I have a hopefully simply tax question.... I began purchasing through a DRIP in Quanex in 2000. In 2008 Quanex had a split/merger.

I received 2 1099-Bs for the Quanex Building Products Corporation An a check of 39.20 per share for Quanex after the split.

How do I figure out my cost basis and fill out my 2008 taxes...finally!!!!!

I only owned 4.7 shares of Quanex and this is starting to feel like a lot of headache. I am looking for help on how to work this out so I can fill out my schedule D.

Thanks, Jason

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So was it a split or a merger? If it was a split, was it a reverse split?

Was it a check of $39.20 per share (times 4.7 shares yields $184.24), or was the total check $39.20?

You should receive a letter from the company telling you how to handle the event. Or you can look it up on their website, or call their investor relations, or just ask your brokerage firm.

Suppose Quantex is bought for cash -- ie. it is merged into another company. Then it's as if you sold each share for $39.20 -- proceeds are $184.24 minus the fees). You know how much you paid for each share.

Suppose Quantex is bought for cash and stock. Suppose every 2 shares of Quantex becomes 1 share in the new company. But any fractional shares are paid out in cash. So after the merge you have 2 shares of the new company, and 0.35 fractional shares which is paid out in cash.

There are many possibilities.