This video shows the format of 3 different types of corporate reorganizations: spin-offs, split-offs, and split-ups. In a spin-off, the distributing corporation transfers assets to a subsidiary, and the shareholders of the distributing corporation receive stock in the subsidiary. In a split-off, the distributing corporation transfers assets to a subsidiary, and the shareholders of the distributing corporate exchange some of their shares in the distributing corporation for shares in the subsidiary. In a split-up, the distributing corporation transfers assets to two different subsidiaries, and the shareholders of the distributing corporation receive stock in the subsidiaries (afterwards, the distributing corporation ceases to exist).
Spin-offs, split-offs, and split-ups may be taxable or nontaxable. If taxable, a spin-off is treated as a dividend, a split-off is treated as a redemption, and a split-up is treated as a liquidation. For a spin-off, split-off, or split-up to qualify as a tax-free reorganization (e.g., a Type D divisive reorganization), the requirements listed under Section 355 and Section 368 of the U.S. tax code must be met.
Edspira is your source for business and financial education.
To view the entire video library for free, visit
To like Edspira on Facebook, visit
To sign up for the newsletter, visit
Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael’s life is to increase access to education so all people can achieve their dreams.
To learn more about Michael’s story, visit
To follow Michael on Twitter, visit
To follow Michael on Facebook, visit
Nguồn: https://bus-rush.info/
Xem thêm bài viết khác: https://bus-rush.info/cong-nghe/
So is the split-up like was happened to Standard Oil, with how Rockefeller still owned stock in all the companies it was turned into.
Staaaack
If ECI shareholders receive FSC shares as special dividends (stock dividends), how is any of FSC, ECI or its shareholders taxed in the first place?
Good 1