What is my basis in AptarGroup shares that I received as part of the spin-off from Pittway Corporation in 1993?
On April 22, 1993, Pittway Corporation distributed (the “Distribution”) one share of AptarGroup, Inc. common stock for each share of Pittway common stock and each share of Pittway Class A stock outstanding. Pittway obtained rulings from the Internal Revenue Service that the Distribution qualified as a tax-free spin-off under Section 355 of the Internal Revenue code. Accordingly, the Distribution had the following Federal income tax consequences for Pittway stockholders: 1. No gain or loss was recognized for Federal income tax purposes upon receipt of AptarGroup common stock in the Distribution. 2. Stockholders were required to allocate the basis of their shares of Pittway held immediately prior to the Distribution among the shares of Pittway so held and the shares of AptarGroup received in the Distribution in proportion to their fair market values. Such values have been based on the respective averages of the high and low trading price of each stock on April 23, 1993, the first day of
Related Questions
- 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?
- I received shares of Transocean as a result of the Sedco-Forex spin-off in December 1999. What is the cost basis for my Schlumberger and Transocean shares?
- How can I determine the tax basis I have in the Hospira shares received in the distribution of Hospira stock at spin-off?
