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February 14, 2024
Question

Holly Energy Partner and HF Sinclair Merger

  • February 14, 2024
  • 1 reply
  • 0 views

Hello,

 

I owned stock from HEP that was purchased by DINO and went through a stock + cash merger.  The merger resulted in a cash payment $4/share and issue of 0.315 shares of DINO for 1 share of HEP.  For my 1099 B, it appears to show the short term gain/loss correctly and the long term makes no sense to me and the Schwab guy didnt understand it either.  He noted he thinks the merger was a 368a but does not seem to be reported even though it has been 45 days, and method for value change would be fair market value HEP at time of merger + cash minus original cost basis.  For me this would be a loss, but on my 1099B the cost and proceeds look incorrect and on the 1099B it says "not reported to IRS" and shows a delta of a few dollars for net gain/loss.

 

here is all i can find on it - http://s21.q4cdn.com/[removed]/files/doc_downloads/2023/12/hfs-merger-faq-final-12-05-2023.pdf

 

My question is does it matter?  Google seems to imply a 368a gain/loss cannot be claimed.  Or is that incorrect and i should be trying to make Schwab correct my 1099B to reflect what i stated above?  Or am I completely off?

 

Thanks, Jason

    1 reply

    CatinaT1
    February 21, 2024

    Were you able to get his resolved? Did you have further questions?

     

    @calo45487 

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    calo45487Author
    February 21, 2024

    I am waiting on Schwab to answer. I agree with what you posted loss should be claimed on 1099B so seems like their error.