Tax on spin off

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Joined: Sun May 01, 2016 3:51 pm
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Tax on spin off

Post by capen2468 »

I owned stock in a spin off company that was bought out for cash last year . I did get the stock when it was spun off and still own stock in the original company . Do I have to pay taxes on the entire amount I received ?
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Joined: Tue May 15, 2018 2:20 pm

Re: Tax on spin off

Post by increment »

This depends on the details of how the lawyers and accountants structured the deal. You may be able to find out from the websites of the acquiring or acquired company how your basis and any cash should be handled, if your broker has not done the arithmetic for you already.
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