Date: Mon, 15 Aug 2005 23:41:15 CST
From: "Elle" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Yahoo's Historical Dividends
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	qYE6C3mHRMVFL9xxfKB3DNHOVqKGW30UZDcW/ybDSXeh6JbSSKQatg==
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"Will Trice"  wrote
> For what it's worth, spinoffs are often treated legally as a "stock
> dividend".  I've never had this happen to me in a taxable account, so I
> wonder if the receipt of shares of a spinoff is treated just like
> receiving a dividend for tax purposes?

No, but the tax basis of the original issue changes, and one will want to
note the cost basis of the new issue. It's simple arithmetic.

Company web sites these days seem to always have a good explanation of
allocating the basis, often including an example. Typically they also often
include a history of changes in the basis. In addition, companies typically
mail shareholders information about the change to the cost basis.