What is the tax basis of the Yara shares in connection with the demerger from Norsk Hydro ?
The Yara share has received 8.5% of the book value of the Norsk Hydro share. Correspondingly, the tax basis for the new Yara share is 8.5% of what the Hydro share originally was acquired for. (The new Hydro share after the demerger has a tax basis of 91.5% of the original purchase price.) Example: If a Hydro share was purchased for NOK 400 before the demerger, the tax basis for the corresponding Yara share becomes NOK 34 while the tax basis for the new Hydro share becomes NOK 366.
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