Is the distribution tax-free?
The U.S. Internal Revenue Services has ruled in a private letter that the distribution of Agilent will be free of U.S. federal income taxes. This means that for U.S. federal income tax purposes, HP shareowners will not recognize a gain or loss when they receive Agilent shares. However, depending upon your cost basis in HP, a gain or loss may be recognized upon sale of your Agilent shares. Any cash received in lieu of fractional shares will be taxable for U.S. federal income tax purposes. International shareowners should consult with a personal tax advisor to determine the taxable effect of this distribution. It is expected that in most jurisdictions outside the United States, the distribution may be taxable.
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