RE:Capital Gains taxesThis really depends on when the sale goes through. If they need addtional approvals on amendments then it will most likely be official next year and not this year. Approvals tend not to happen exceptionally fast during the holiday season.
Thanks for the heads up on it but I want to note that disposition this month would be extremely aggressive and nothing about this merger is moving at an extremely aggressive pace.
felix10 wrote: Do all the Canadian Tribute shareholders on this board realize they will be facing a big tax hit for 2015 if the deal goes ahead as proposed this month?
Though this is a merger, for tax purposes, it is treated like a buyout. (for details, see page 74 of the arrangement).
We will have a deemed sale of our Tribute shares at the price they're at when the shares are exchanged for those of the new company.
That could mean a large tax hit for many of us who are in at much less than $1/share. It's unfortunate that this is happening so late in the year (assuming it does happen this year) as it doesn't give investors much time to take tax losses on other investments as a possible means to offset the gains we will be facing when we lose our Tribute shares.
I just wanted to give a head's up to anyone who might not realize this meger has immediate (meaning 2015 tax year) income tax consequences for Tribute shareholders.
Also, on the issue of whether the companies will have to re-issue the related materials or re-schedule the meeting because of the change from Ireland to Canada, I'm thinking they may let things stand, proceed with the meeting, and then try to deal with the change by a simple amendment of the proposal at the meeting. If you read the 2 items we are voting on, they each say "the resolution may be amended or varied at the meeting..."
It seems like a pretty significant change to deal with in such a manner, but at this late date, I'm thinking that may be their plan.