Does anyone know if US cash and stock merger/exchanges are tax-free for Canadian shareholders?

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questionsforever
questionsforever Member ✭✭✭✭

For example, something like the VMW-AVGO merger where you received 50% cash and 50% stock of AVGO at a ratio of 1 share of avgo for every 3.97 shares of VMW?

I imagine the cash portion is straightforward, but the stock for stock exchange? If you elected to receive 100% shares could that be used to imply you expected an all share merger?

Also how to record this? Would you first sell the cash shares at the merger price paid. Then for the remaining shares enter a stock for stock exchange in the Quicken register?

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