My son had 100 shares of Curagen and he bought more cldx after the merger. He just sold some shares. I'm trying to find out how many shares he got for his 100 shares of Curagen.
Any Help Appreciated,
Capital gain income from assets held longer than one year are generally taxed at special long-term capital gains tax rates. The rate that applies depends on which ordinary income tax bracket you fall under.
0% applies to long-term gains and dividend income if a person is in the 10% and 15% tax brackets,
15% applies to long-term gains and dividend income if a person is in the 25%, 28%, 33%, or 35% tax brackets, and
20% applies to long-term gains and dividend income if a person is in the 39.6% tax bracket.
You forgot that the revised tax code, under the Small-Cap Biotech Merger Encouragement and Support Act of 2009, secures tax-free gains in biotech companies without approved products and whose market capitalization is less than $3 billion as long as you held the stock from the original company without selling any shares post-merger, retroactive to mergers that have occurred since 1987. I would think that Celldex shares held from the Curagen days meet that act's criteria. That would be completely tax-free gains, my friend. Check the IRS website for 1040 Schedule B, subsection S. It's all there.
But you'd better sell the shares while Celldex's market cap is below $3 billion. If you wait to sell until the market cap is over that amount, then all of your gains are taxable at the standard rate plus a penalty of 23% for being one of the greedy one-percenters who tried to become too successful.