One example involves receiving cash in lieu of fractional shares as part of a merger or spinoff, and reporting that cash correctly can be harder than you might think. basis of Wabtec shares going forward. No fractional shares of Wabtec common stock will be issued in the merger, and instead GE shareholders will receive cash in lieu of any fractional share. That means a shareholder with 10,000 GE shares will walk away with only 54 shares of WAB along with a little cash. When will I have to pay taxes on the stocks. Wabtec Corporation 30 Isabella Street Pittsburgh, PA 15212 - USA Phone: 412-825-1000 Fax: 412-825-1019 I am certainly no expert in how index membership decisions are made, but it’s worth watching. I am totally confused. The GE’s website under the investors tab doesn’t have any mention of spinoff of the transportation business to WAB. If you want to get involved, click one of these buttons! The General Electric cost basis will not change and the Wabtec shares are considered covered shares with a cost basis of the closing price on February 25, 2019: $78.06. $78.06, establishes the shareowner’s cost basis in Wabtec shares going forward. That should wipe out the cash received in the dividend.
Has anyone found a cite for that?Patrick, I am not a tax expert and you should certainly ask one. This will offer shareholders a chance to sell their GE shares but retain their Wabtec interests or alternatively sell their Wabtec interest and retain their GE shares. If you hold them directly, you should receive them that way.
Wabtec is currently in the S&P Midcap 400 index, but it’s current pre-merger market cap is already above many S&P 500 constituents. Use the total $ amounts for the buy and sell, not the per share amounts. I couldn’t find it on the web.The letter from GE HR to retirees in the RSP was not clear at all.
02/26/19 (or a later date if you received cash-in-lieu later) Sell 0.112 shares WAB for $8.20 (~73.214/sh). FWIW: That sell transaction will generate a ST cap loss for you of about $0.54.
Shareholders should be aware that this spinoff is taxable. Enter that resulting dollar amount as a dividend from GE on 2/25/19; Buy the number of shares of WABTEC per step 1 at a per share price of $73.96. That means a shareholder with 10,000 GE shares will walk away with only 54 shares of WAB along with a little cash. When an employee selects the cash or opt-out, he or she is choosing cash-in-lieu of benefits. It looks like you're new here. I think that should do it. Hi All, I don't have a quicken account but was reading the comments looking for direction also myself. Divide the Cash in Lieu by the fractional number of shares received as determined in step 1. The spin-off and the merger are currently expected to occur on February 25, 2019, subject to certain … the transaction has no impact on the tax basis in GE shares' Small shareholders will likely receive just cash in lieu of fractional shares and the odd exchange ratio could create orphaned positions and a period of forced selling.Additionally, a when issued market is expected to begin trading on or about February 14th. That's your selling price. Historic cost basis in GE shares is unchanged and irrelevant to determining the
We were told we will retain the same number of GE share units, but that their value will change. The terms of the spin-off was 0.005371 of Wabtec for each share of GE (1 Wabtec share for each approximately 186 GE shares) with a cash-in-lieu rate of $74.6834 for fractional shares. The cash-in-lieu option is only available to employers and employees through a Section 125 Premium-Only or Cafeteria Plan.
common stock outstanding on a fully diluted basis immediately prior to the closing of the merger. We will keep you updated if there is a change.Disclosure: Author holds no position in any stock mentioned.I expect 25 shares of the Wabtec stock based on my shares of GE, but I don’t know when I will get them and how will they come to me. When I sell or before?Normally a corporation will have documentation on their website with a basic formulas to calculate the subsequent tax basis. Small shareholders will likely receive just cash in lieu of fractional shares and the odd exchange ratio could … Are they held somewhere or will I get actual stock certificates mailed to me?You should get the shares on the distribution date, February 25th. What is the tax basis for the WAB shares received by GE holders? For each share of GE stock owned, shareholders received 0.005371 shares of Wabtec stock, approximately one share of Wabtec stock for every 186 shares of GE stock.
The date of record for the transaction is February 14th and GE shareholders as of that date will receive ~0.005403 shares of Wabtec for each GE common share owned. 0. The spin-off and the merger are If you hold your shares in a brokerage account, the new shares will show up there.