The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Cost basis of spin-off Date:  2/6/2007  5:49 PM
Author:  ptheland Number:  91778 of 131229

Easy enough. The problem is that in this case, the new company didn't start trading until about 14 days after the spin-off -- the spin-off was on the 14th of the month, and the new company didn't start trading until the 28th. So no market value data is available until the 28th.

Did the parent company's stock show a big drop in price - reflecting the spin off - on the 14th or the 28th?

If the price drop happened on the 28th, I'd use that date for the FMV calculations. If it happened earlier, presumably on the 14th, then I'd be tempted to say you need to come up with a value on that date.

Care to share the name of the companies involved? Perhaps another set of eyes on the info they provide could help.

Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us