American Creek Resources Ltd V.AMK

Is this a mixup or for real?

[FreshStart26]

I know this is a little off topic from the usual, but new investor here over the past couple years. Doing my taxes and seeing that the spinoff company is considered realized gains even though nothing but new shares were given (no actual gains). Is this a way AMK is screwing all of us so they don't eat any costs themselves and they can pay themselves handsomely for providing nothing yet? Wanting to make sure everyone else is in the same boat and this isn't some stupid mix up before I get frustrated.... this is all new for me. Any clarification is greatly appreciated....

[Mustang80]

Fordster, with mine it simply adjusted cost basis between the two such that it shows I paid next to nothing for Stinger. Hence anything sold of stinger for me is a cap gain. I don't believe you have to pay anything until you sell aka it's unrealized. Not tax advice, just what I believe happened....

[Jetstream1281]

As near as I can tell, it WILL be taxable the way they performed the spinoff. However, like Mustang80 says, I don't think you actually pay unless you sold them. The other thing I'm not overly clear on is that in some instances, depending on how the spinoff is structured it can be viewed as a dividend, which IS taxable....it's all very muddy.

[FreshStart26]

For anyone interested I talked to the company I do my taxes with and YES IT IS TAXED. It was not a gifted share in place of your original share. It was considered sold and re-bought on your behalf. And looking into it, AMK actually could have done it in a way that we do not get taxed. Congratulations everyone who had this done in a cash account. You're going to get taxed on 50% of the price

[FreshStart26]

Also for the nitty gritty details my T5008 form shows the entire position as realized gains not just from the gains on share price. So its considering from 0 cents all he way to current price at time of spinoff as gains.... super happy that this position is going to add 70% extra onto my entire yearly income.

[bigboy999]

Check you private messages ........ thanks

[Stockmoves1]

nothing in life is free.. if your given shares and u sell at a profit revenue canada says declare the gains.. if u sell at a loss over the cost contribution then u have a tax loss against future income.... the gain is taxed at a 50% capital gain if this is for investemnt purposes only vs a job for you... dats my 2cts on it.... this is a common transaction re:spinoff that enables AMK to be a clean