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General Growth Properties, Inc Message Board

  • frankie_ac_202 frankie_ac_202 Jan 19, 2012 11:18 PM Flag

    NON-TAXABLE SPIN OFF/LIQUIDATION DISTRIBUTION (RSE)

    READ IT! That is the paste from TD Ameritrade. It is non taxable this RSE that we received.

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    • stock_option_investor stock_option_investor Jan 21, 2012 10:17 PM Flag

      Careful on the verbiage. The spin-off itself was not a taxable event, when you sell it - it IS. Meaning, they could have done the spin-off as a taxable distribution at normal income levels, which would have incurred a tax liability, but also would have set your "buy price" at whatever that value was. Instead (and in my opinion what they did was both accurate & smart), they distributed it as a non-taxable distribution. What that means is that you don't incur your tax liability until you sell. If you hold for more than 1-year then it becomes a long term capital gain & you get taxed at a reduced rate. That lets you control it (which is why it was smart) - instead of forcing a taxable event at could have easily been a short term capital gain at a much higher rate.

      This is GGP management looking out for the best interests of all shareholders, and it should be commended.

    • Not true. Rouse Properties was a taxable distribution. Use the free spinoff calculator at www.costbasis.com to find your tax cost.

 
GGP
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