Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I read most of the prospectus on the deal and the tax implications seem straightforward for most US taxpayers. According to what I read, the gain is the lesser of either:

1. The cash paid ($30 per share) or ...
2. The sum of the cash paid, plus the fair market value of DIS shares received (.7452 DIS share per MVL share), less your basis in MVL.

But this still leaves questions.

I received cash and DIS shares in my brokerage account on January 4 and January 5, 2010. I'm trying to learn whether my gain is realized in 2009 or 2010. I'm also trying to learn what was the fair market value of DIS per share for purpose of valuing the deal and computing my gain. And finally, I'm trying to find out whether the redemption of my fractional DIS share occurred in 2009 or 2010 for tax purposes (that transaction posted in my brokerage account today, January 6). I've written to MVL investor relations to try to get answers to these questions. DIS investor relations doesn't have a posted e-mail address nor a web form! I will post answers to them here if and when I receive them.

In my case, gain is formula #2 since my basis in MVL is approximately $28 per share. That should, in theory, result in a gain of approximately $25 per share, and I'm assuming that the remaining $5 per share is treated as a return of capital, thereby reducing my basis in DIS shares to a sum total of about $5 per MVL share (approx $6.60 per DIS share) less than my original basis in MVL.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.