How will I determine the U.S. federal income tax basis I have in the Tyco International shares I received in the June 29, 2007 spin-off of Tyco Electronics and Covidien?
Based on the closing prices at which the common shares of Tyco International, Tyco Electronics, and Covidien traded on July 2, 2007, $53.36, $39.97, and $43.41, respectively, as reported in the New York Stock Exchange 39.02% of your pre-distribution tax basis should be allocated to your common shares of Tyco International (including any fractional share interest); 29.23% should be allocated to your common shares of Tyco Electronics (including any fractional share interest); and 31.75% should be allocated to your common shares of Covidien (including any fractional share interest). The attached worksheet, “Click Here” will help you calculate your new tax basis in your common shares of Tyco International. A hypothetical example is provided, together with space to fill in your actual numbers. In order to use the worksheet, you will need to know the tax basis of your common shares of Tyco International before the distribution. If you purchased Tyco International common shares on more than o
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