Has anyone notices how the SCOTT tissue rolls have been shrinking in width ?
They shrunk by about a quarter inch a while back and now that they have done away with the center roll they have shrunk again.
GREAT WAY TO SCAM THE PUBLIC AND LOSE CUSTOMERS !!!!!!
I found KMB's letter, dated Now 11th, which explains the cost basis allocation between KMB and HYH.
For all shares of KMB previously purchased, and dividends reinvested, their basis's need to be adjusted so (1) KMB retains 95.8478% of original basis, and (2) HYH receives 4.1522% .
The letter was posted on a link on HYH website, but not on KMB yet....even though its a KMB generated letter.
No. You will get from KBM or brokerage holding your stock an allocation between the two. Your cost basis KMB will go down my the cost basis for HYH.
On a spin-off, the new Company (HYH) dae of purchase is the same as the old company (KMB). Whenther long or short depends on when you purcahsed KMB
Actually, shareholders got 1 share of HYH for every EIGHT shares of KMB that they held. So, for each share of KMB, you received one-eighth of a share of, using your number, a $38 stock. So, you received a little under $5 of value per KMB share.
My Vanguard account has already re-calculated the cost basis (I assume in a manner consistent with instructions from KMB). Overall, 4.15% of the cost basis has been re-assigned to the HYH stock. The cost basis for KMB has been reduced by that same amount. Vanguard went back to all re-invested dividends over the years and re-assigned values for each of KMB and HYH.
and HYH basis will be the portion of KMBs pre-spinoff basis not retained in KMB.
No. It will drop somewhat since pre-spinoff basis in KMB is allocated between KMB and HYH.
I still haven't received the shares yet from sharebuilder... they tell me the shares should be posted soon. They seemed confused when I inquired
Not 100% sure, but think the company (KMB) will send you a notice in the next month or so on the allocation of cost basis. I think it is generally based on the closing prices from Monday, i.e. if the value of HYH is 4% of KMB, then 4% of your cost basis is allocated to HYH. Also, pretty sure your purchase date for KMB shares carries over to HYH shares.
I don't know how the basis could be zero, you paid something for the HYH stock through buying KMB.
You are correct in that your revised cost basis for your KMB will go down, by the amount which gets allocated to HYH. Your total original basis for your KMB will be reallocated between KMB and HYH to create an adjusted basis for KMB and initial basis for HYH (both which will add up to the original basis you started with). There will be a formula given by KMB to tell you how much (as a percentage) of your original basis gets to stay with KMB and how much will be attributed to HYH.
For ex: you have 80 shares a stock (KMB) you paid $100.00 each (Basis is $8000)
Lets assume KMB determines (through pricing/formulas etc.) that the basis needs to be divided between the 2 stocks as follows: 90% to KMB and 10% to HYH.
After the spin off, you still have your 80 shares of KMB, but now ITS BASIS is $7200 ($8000*.9)
you now have 10 shares of HYH, with ITS BASIS of $800 ($8000*.1)
Your original basis of $8000 is now split into $7200 and $800.
You would then divide the $7200(total basis)/80 (shares) to get a new cost basis of $90/Share for KMB, and divide $800 (total basis)/10 (shares) to get initial basis of $80/share for HYH. (THESE are just EXAMPLE NUMBERS)
While the formula which determines the ratio for the allocation of the basis between the 2 stocks will be the same for all, its YOUR Pre-EXISTING TOTAL BASIS in KMB which will determine your HYH initial basis. IF you paid low prices for your KMB, your HYH initial basis will be a lot lower than one who has paid a lot for their KMB. So, 2 people can now sell HYH, and one have a loss, and one have a gain, determined by the prices (basis) they bought/reinvested dividends of their original KMB.
As for the long term/short term aspect....I believe spin-offs take the longevity dates of the original purchases of KMB, so if you held KMB longer than a year, your cap gains/losses should be Long Term.
OK, just looked online at my brokerage account and had some communication from KMB on the spin off. Regarding tax basis, it says "...your basis in KMB common stock will be allocated between KMB and HYH common stock in proportion to their relative fair market values on the date of distribution. Within a reasonable time after distribution, Kimberly-Clark will provide information to enable US taxpayers to compute their taxes..."
Never got a mailing. So basis in KMB is same but basis in HYH is zero?