I am sitting for the CPA exam soon and have also taken tax courses. You will have to pay the short term capital gains up to 13.50 whether you sell it or not. I had this happen to me a few months ago with Obagi. As for the $2 coupon you also do not have to pay gains on that until they are exercised since you aren't even positive that income will be coming in
dleonard1991...I believe the CVR's will be listed securities and will have a trading value as of the close of the merger. Say, just for example, the CVR's could be sold day one of the merged companies at say .50 per right. Could the IRS then argue that because they had a marketable value the day you received them, that such was part of the total consideration you received in the merger, and tax them accordingly??
I was thinking the coupon would be LTCG if it pays out in the future. The 13.50 may be taxable based on the day of the deal. I am going to call my accountant later on. Some of my shares are LTCG and some may end up as ST cap gain. I would have rather had CBST shares to let me for sure hold to LTCG into 2014. This is all contingent on this deal holding up for sure or if the might come a White Knight. Call an accountant. I am buying 6000 shares 10 minutes ago. Oh well, the $2 coupon is worth more than current Share price IMO.