I just received my 1099 from Scottrade and it seems I'm taxed on the conversion earlier this year. It's as if I took a distribution. Obviously I had no say in the matter and it was reinvested so quickly I never received any proceeds. Has this happened to anyone else?
My parents were charged so much in taxes because they bought the shares in the 80's tat it put two 85 year olds in the 33% tax bracket and have to sell shares to pay the taxes never wanted this. There should be a law against this tpe of transaction. Especially because the company is now based in Ireland and will not be paying taxes in the USA anymore.
Nest time you might read some of the material that companies send you. The proxy info clearly laid out the tax consequences of this transaction. Subsequently, your basis is now higher because of this transaction, but you need to pay capital gains tax on the value at closing minus your original basis. If you don't read the proxy, you shouldn't come around later complaining about management. The information was readily available if you chose to look for it.
You also need to check your monthly statement. The dates acquired for all the old ETN stock are not carried forward. The acquired date for the Eaton plc stock should be 12/04/2012 which means that no long term capital gains can be claimed until after 12/04/2013 if you sell the stock.
Nice stock but same thing happened to me. Tax guy said as long as the brokerage house showed it as again it was taxable. Same thing happened with my shares of ssys.I don't understand why my account shows the actual cost per share price has increased.
This situation was explained in the proxy for merging Cooper into Eaton and Eaton's subsequent incorporation within Ireland. I researched the tax liability and found that the transaction is indeed taxable. Do not be surprised in the future when you see a 20% Ireland tax deducted from your dividends.
I did not realize the shares were exchanged till I received my December Statement in January 2013.
It was too late to sell other stocks at a loss to negate the gain. Did the proxy you received explain the taxable consequences of the exchange and was it easy to find in the proxy statement ? Did you get a transaction notice from your broker ?