Tax-Free Spin-Offs

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Posted by SS on January 13, 2007 at 22:04:20:

Mark,

I notice that the documentation with FM notes that spin-offs are handled always as if they are "taxable", but most of the spin-offs in which I participate are tax-free and I'm trying to figure out what difference, if any, that makes to the way FM handles these special situations. In particular, I'm wondering if by "taxable", the documentation is making reference to the need to establish a basis for the day of the spin-off, or to something else?

Any insights appreciated.

Replies:

• Re: Tax-Free Spin-Offs Mark 09:57:24 01/14/07 (0)