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In 2015 Mylan Labs changed their name to Mylan NV after they moved to the Netherlands. Shortly after that I took possession of my stock and placed it with my broker to sell. For my taxes I received two 1099 B forms. Apparently, Mylan NV felt that issuing a stock for a name change constituted a sale. I also received a 1099B from my broker for the actual sale. So far, I've been told that I have to show the first sale as a long term (held the stock for about 20yrs.) and the actual sale as a short term. Isn't there some way to waiver the first sale as just a name change and use a long term sale for the actual sale?

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It looks like what you're calling a name change was registered as a merger that resulted in an exchange of stock. If that's the case, then what you've been told is correct. You've got one long-term sale and one short-term sale.

Based a quick read of the Form 8937 that was filed, it looks like there were multiple entities involved in this event, more than one of which existed prior to it.

https://www.mylan.com/-/media/mylancom/files/form%208937%20for%20mylan%20n%20v.pdf

  • A corporation is legally chartered by the country -- or in US, the state -- where it is nominally located, and that charter can't move, so the only way to change it is a sale/exchange to another, perhaps newly created, corporation. – dave_thompson_085 Mar 21 '16 at 20:39
  • @dave_thompson_085 It's not that simple. Wyoming (as one example) allows for a process called continuance, which is basically transferring a charter from another state/country to WY. "Continuation occurs when an out-of-state or out-of-country entity wishes to transfer its state or country of formation to Wyoming and become a Wyoming entity." soswy.state.wy.us/Business/Continuance_v_Domestication.aspx – user32479 Mar 21 '16 at 22:50

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