Silicon Investor (SI) -- The First Internet Community

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.

Gold/Mining/Energy : Canadian Investment Resource Guide -- Ignore unavailable to you. Want to Upgrade?

To: TFF who wrote (170)	3/16/1998 4:31:00 PM
From: Gord Wilson	Read Replies (2) \| Respond to of 591

Tax question regarding spinfoffs? I owned shares in General Instrument Corp (GIC) last year. It re-organized and spun-off two companies for which i received shares and the original company did a reverse 4 to 1 split. My collected shares were worth the same as the original investment in the one company. My discount broker somehow decided that i realized a large dividend from this transaction almost equal to the value of the original investment. I don't think this is a correct interpertation of the break up. I cannot see that anyone would have accepted the deal given the substantial tax implications. I have already talked to the broker and they look like they are going to stand firm. I have asked for some detail on the interpertation but am not holding out much hope. It's already taken a week to get any feedback. Which amounted to "we can't figure out how we arrived at the actual dollar amount but we still think it's a dividend". Is there anything i can do short of hiring a professional to persue this, and if i do hire a lawyer could someone give me an idea of what that might cost and what type of lawyer to hire. Any advice would be welcome. Thks, Gord I love tax time :) .