Zendesk Cash received from merger - pairing to the stock buy

dogwind

I received cash for Zendesk that is called a mandatory merger in Schwab. It was cash because private equity bought them. The action in Quicken is being called a Deposit, it does not account for the shares sold. Do I change this to a Sell to account for the shares still in Quicken and to account for profit/loss that will be reported (yes?) on 1099?

q_lurker

The deposit transaction should be deleted. A sell shares for the same amount should be entered. 

questionsforever

Is the cash amount received taxable, as I imagine it would appear in the capital gains report if the cost basis is lower, or a capital loss if the cost basis is higher?

Mark1104

@questionsforever

depends on what the firm told you and then how you recorded that cash in Qucken.  Did you record the cash receipt as a 'sale'? or just as cash received?  How did the brokerage firm record it?

mshiggins

zendesk, inc. - SEC.gov

https://www.sec.gov › Archives › edgar › data

The exchange of Zendesk common stock for cash pursuant to the Merger will be a taxable transaction for U.S. federal income tax purposes. 

This info would indicate the shares were sold. You would have received cash from the sale. The taxable amount will be the capital gain or loss on the sale.