Stock spinoff tax treatment
Assume you own a single block of 112 shares of DowDuPont common stock with a tax basis of $50 per share (and a total tax basis of $5,600). You are entitled to receive 37.33 shares of Dow common stock in the Spin-off. Because no fractional shares are issued, you receive 37 shares of Dow common stock and cash in lieu of .33 fractional shares. With GE’s (GE) share price in freefall and concerns about its debt levels, the company began offloading assets left and right. One disposal arranged by short lived CEO John Flannery was the spinoff of its transportation business via Reverse Morris Trust by subsequently merging it with Wabtec (WAB) to form a leading freight car powerhouse. Tag Archives: GE spinoff tax basis Wabtec Ready To Roll After GE Transportation Merger. By Inelegant Investor | February 27, 2019. GE GE Spinoff GE spinoff tax basis GE stock how many Wabtec shares for GE shareholder Larry Culp Raymond Betler WAB WAB spinoff WAB stock Wabtec Wabtec spinoff Wabtec stock.