I had some shares get taken over by another company for cash and script. I had 300000 shares in the original company and received $.04 for each share plus 1 share for every 4.21 I owned. How do I work out the cost base for the new shares? Cost of original shares was $0.56 if that is relevant.
Most companies share a tax ruling that explain things in detail, @Galaga67 . Given the figures you've quoted, your specific case would appear to be Musgrave/Ramelius. You'll find rollover relief is available, so I'd hazard a guess that you now have some 71,259 shares with a cost base of $0.56 times 4.21, or $2.36. And the $12,000 cash you received is "other income" on your tax return; it's not a dividend.
You'll find all the details in the Target's Statement document from Musgrave on 13 July 2023. See section 9 on page 52.
Most companies share a tax ruling that explain things in detail, @Galaga67 . Given the figures you've quoted, your specific case would appear to be Musgrave/Ramelius. You'll find rollover relief is available, so I'd hazard a guess that you now have some 71,259 shares with a cost base of $0.56 times 4.21, or $2.36. And the $12,000 cash you received is "other income" on your tax return; it's not a dividend.
You'll find all the details in the Target's Statement document from Musgrave on 13 July 2023. See section 9 on page 52.
Yes it was the Ramelius takeover of Musgrave. I thought that is how it would be handled but it's the first takeover I've been involved in, and wasn't sure if the $12000 would go into the cost base somehow. Thanks for your help @knaresbro
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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