Spin-offs are not taxed as long as shareholders of the parent company are given at least 80 percent of the shares in the new company.

Name: Spin-offs are not taxed as long as shareholders of the parent company are given at least 80 percent of the shares in the new company.
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Question

Quizplus · Accepted Answer

This is true under US tax law. As long as the parent company distributes at least 80% of the shares to its shareholders and meets other requirements, the spin-off will be tax-free.

Spin-Offs Are Not Taxed as Long as Shareholders of the Parent