High Arctic Energy Services Inc T.HWO

Tax Implications of Spin Co

[Stonksonlyup90]

Apologies if this has already been discussed, but how is the tax basis for Legacy $HWO & New Spin Co being treated for tax purposes (in the future when one goes to sell. Realize there are no tax implications on the spin out itself).

I believe tax basis is being evenly split 50/50 between the two companies, but haven't seen this specifically mentioned anywhere.

[JonathanJSmith]

Stonks: I found this regarding your question: How to Calculate Cost Basis After a Spin-Off (sapling.com) Remember, if your cost basis was less than you received with the RoC, then the difference is a capital gain and your cost basis going forward will be zero.  On a different note, they are expected by the OSC to announce results for Q2 by Wednesday Aug 14. My guess is the split won'

[Stonksonlyup90]

Thanks, similar to what I had assumed. Just need to dig through the filings when I get a chance and see what proportion they are assigning to each company (ie - 50/50, 60/40)