Altaba Inc. (formerly Yahoo) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Altaba Inc. (formerly Yahoo)

AABA 19.63

0.0%

Nov 6 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: LRS who wrote (3322)	11/30/1997 2:14:00 PM
From: Rational	of 27307

What you are saying is that the cost basis for 411 was less than what 411 shareholders got from YHOO. I had the impression that 411 was a privately held company. If so, 411 shareholders could duly adjust their intangibles to make their book value equal to $52 times the number of YHOO shares they got. Then, there would be no taxable gain when they sell YHOO shares at $52. I have seen in the cases of acquisitions of privately held companies, the intangibles in the book of the seller shoot up to match the offer. It is permissible by the IRS. To see why, suppose that I am an artist and have a collection of arts for which I receive an offer which is higher than the material cost to me. I will not pay any capital gains tax based on the material cost basis. If, however, I had floated a publicly traded company, then the trading price (before the offer) of that company would form the tax basis. Thus, it all depends on what 411 recorded as the book value of their company, if this was a privately held company. If 411 was a publicly traded company, then you are right. Sankar

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next