Did Abbott shareholders have to pay U.S. federal income taxes on receipt of Hospira shares at spin-off?
Abbott received a ruling from the Internal Revenue Service that, for U.S. federal income tax purposes, the distribution of Hospira common stock was tax-free to Abbott and to Abbott’s U.S. shareholders to the extent that they received Hospira common stock. However, fractional shares were not issued, and any cash received in lieu of fractional shares generally was taxable. Additional tax information, including guidance on how to split the cost basis between Abbott and Hospira shares, is available by clicking here. You should consult your tax advisor about your particular situation, including the application of state, local and foreign tax laws.
