Based on Case 2 Example, will my broker deduct the $2.46 from original cost basis per share and do I have to pay tax on it?
selling it now before the merger is less work for you and wont cost you additional accountant's fee. And shorts are betting Dish wont let S have Clearwire... back to $3
Capital gains if cash is greater than cost of stock. New stock may be valued at 0 when sold. This is the way it should be. Even the counselors at the IRS will have trouble explaining.