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I was a shareholder in a US company (Livongo) that merged with another US company (Teladoc). For my Livongo shares I received some shares of Teladoc plus a cash consideration and a special dividend. I think I understand how to handle the special dividend, but would like to know how to handle the capital gains question. Are the tax implications here any different than they would be if both companies were Canadian?
If I am asking for too much here, may I ask where I can find the relevant info?
Thank you so much for whatever help you can offer.
The capital gain should be the difference between the fair market value of the consideration received in excess of the amount paid for the original shares. Consideration includes cash and non-cash (i.e. shares of Teladoc).