Aaach. Sorry about your son. I hope for speedy recovery and no long-term effects. Good wishes to you, wife other family members. Hopefully over in ten days.
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In my opinion, no, you cannot arbitrary allocate. You must - imo - allocate some cost basis to MXL, and some to the cash received and gain from that (assuming you bought all your SIMO below the SIMO price at takeover). ("must" assumes you are following tax law). And in a certain defined-by-tax-authorities way. It's as if you sold the stock and received cash for that sale. You'd pay tax on that cash from that sale. In the same vein, in the receiving of acquirer's shares, your cost basis of SIMO just gets transferred. If you have several lots of SIMO bought at different times, they will become several lots of MXL with those different times as a basis. How much money is transferred to cost basis is the question.
Simple idea me, since SIMO's stock price already seems to hover close to the cash component, if I were willing to have MXL, I'd just sell all SIMO. - maybe near closing of the deal (it could be as late at 2023, so tax paid Apr '24). Then or before, I'd buy MXL. You wouldn't get to keep the cost basis that would've otherwise been transferred to the MXL shares, so your buy of MXL starts the cost basis and short-term holding of MXL. It would be so much less heartburn for me this way.
But for someone who, unlike me, might be holding thousands of SIMO shares and/or wanting many .388MXL shares from closure, outright selling of SIMO might not be acceptable. |
