I'm a former SPI share holder and got my IBDRY as a consequence of the merger. I'm told by TD Ameritrade that this was a taxable merger which means that both the cash I received and the new shares are taxed. They listed both on the 1099. I'm wondering if this is true. It seems unfair to have to pay tax on the new shares.
i spoke with TD AMeritrade today. Their first line tax person has requested further review by TD's second line tax dept,but feels there may be a mistake. Their review could take 3-4 days. I am hoping an error was made on the 1099.
I hope you are right. Please post the results when you hear back from TD Ameritrade.
I think it is a mistake but still it is hard to argue with the IRS when the 1099 says it was a gain. I asked TD Ameritrade how it could be considered a sale and purchase when no funds (for the share portion of the merger) went into or out of my account.
For a long time I've wanted to move my account because of all the problems with the statement and taxes with TD....
My bases according to the TD Ameritrade tax department is the price of the new IBDRY shares on the date I received them. If this is true, it is even worse because I was one month short of a year when the merger occurred so the gain on the SPI shares would be all short term. I had thought that the cash would be a short term gain but the shares would keep the date and bases of half of the old shares.