What are the tax implications of the stock dividend?
For U.S. employees, the shares you receive under this distribution will not be taxable as income to you for federal tax purposes. However, if you sell any shares, this distribution must be considered in figuring the tax basis of your shares in order to determine your gain or loss for federal income tax purposes. For example, if prior to the dividend you own 100 shares with a basis of $20 per share, half of the basis in each of those shares would be allocated to the corresponding new share, resulting in a basis of $10 per share for each of the 200 shares owned after the split. For tax purposes, the holding period of the new shares is the same as for the old shares on which they were issued. This description does NOT completely describe the tax consequences of the distribution, and you should consult your own tax advisor for advice based on your particular circumstances and applicable tax authorities. In addition, the tax consequences of the stock dividend to particular categories of sto
