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How do you compute the cost basis for the Kraft spin off of Mondelez?
Relative values at date of spin off
Cost basis percentages merger amerisourse and pharmerica?
Allocate .0289 (2.89%) of your cost basis in AmerisourceBergen to Pharmerica after the spinoff of .0833752 shares of Pharmerica for each AmerisourceBergen on 12/31/2007. Allocate .9711 (97.11%) to AmerisourceBergen as your new cost basis for AmerisourceBergen. The free spinoff calculator at www.costbasis.com can help you with the math.
What is the transfer of all or a portion of a subsidiary's stock or other assets to the stockholders of its parent company on a pro rata basis called?
stock split
How do you compute the cost basis for the Altria spin off of Kraft?
You must allocate the basis, or tax cost, between the shares of Altria and those of the spun-off Kraft. There are 2 information sources to help investors/taxpayers make this calculation. On the IRS Web site (irs.gov) look at Publication 550 (Investment Income and Expenses). It discusses corporate reorganizations. The Altria official website (see Related Links) discusses the spinoff in detail and includes information about how to calculate the basis of those shares. * First, lets look at how the Kraft stock was spun-off. For every share of Altria, shareholders were awarded .692024 shares of Kraft. * Second, you need to calculate the relative fair market values at the time you received the Kraft shares in order to allocate the basis. You should use the April 2nd (the day after the distribution) closing market price. Using the $68.22 closing price of Altria and $30.85 closing price of Kraft making the combined value of the two new companies $99.07. Using the above information we can calculate the following: ---- Example using 100 shares of the original Altria New Altria Shares 100 x 68.22 (4/2/07 closing price) = $6,822.00 New Altria percentage of total fair market value $6,822.00/$8,956.89 = 76.16% ---- New Kraft Shares 69.2024 x 30.85 (4/2/07 closing price) = $2,134.89 New Kraft percentage of total fair market value $2,134.89/$8,956.89 = 23.84% ---- Now to determine your personal cost basis for the new Kraft shares simply multiply the total cost of your original Altria purchase by 23.84% Note: In a spin-off situation, you should always receive info from the divesting corporation with instructions on how to allocate basis between the new and old stocks. Hold onto that until the limitations period expires for the year in which you sell or otherwise dispose of the stock in a taxable manner. This is typically three years from the date the return was filed or due. The link to the Altria Group Shareholder Tax Basis Information can be found in Related Links and should be printed and returned with your 2007 federal income tax return.
Is Martin Luther a significant religious figure?
He formed the basis for all of Protestantism. One could certainly say he was an important religious figure.
How do you interpret a score achieved by the students in the physical fitness battery test?
On the basis of hi body figure,
What is cost basis of stock?
The cost basis is the original value of an asset adjusted for stock splits, dividends or capital distributions. It is used to figure capital gain or loss for tax purposes
Where the Strips of alternating polarities found in rocks in the ocean basis?
bugel says we never learned this, so figure it out
What cost basis should I use to figure out capital gain for stock which was a gift?
If the fair market value (FMV) of the stock was greater than the donor's adjusted basis at the time of the gift, your basis is the donor's adjusted basis plus any gift taxes paid at the time of the gift. http://www.irs.gov/faqs/faq-kw77.html
How do you figure the Cost Basis of a mutual fund that has dividends reinvested and has many check redemptions for 30 years?
Every check redemption would have required the calculation of cost basis, so the problem can't be very difficult. Start from the last time the basis was calculated and add all of the interim investments.
Is snug as a gun a figure of speech?
"Snug as a gun," is a figure of English speech. It regards a person or object being highly comfortable and settled in their environment. Its basis is from a firearms being safe and secured (or snug) in a holster, against movement, damage and loss.
How do you determine the cost basis of a stock involved in a spin-off?
The "spinning-off" company must provide this information. You can usually find it on the website of the company which spun off the stock, generally under its "Stockholder Relations" tab. It would likely give you the percentage of the prior cost basis of the spinning-off company to apply to the stock which was just spun off, or a formula to apply which you must calculate yourself. Often, you, as a stockholder, would have received information prior to, at or just after the spinoff took place, especially if it was also part of a merger. This information can also be obtained in the public library, if you have a larger good one nearby, in the reference section. There is a publication called something like, I believe, "Capital Changes Report." Someone who works in the reference section can help you find the information within. See Related Questions for a good example of how to determine the cost basis of a stock involved in a spin-off. This particular example is related to the Altria spin-off of Kraft.
