It is ludicrous to get involved in a legal matter over this prospective buy-out. I sold my LSE-C one minute after seeing that news. Only the attorneys make money, hardly the shareholders. Sell and use the funds elsewhere, or buy ARCP. They just announced another purchase of properties, from GE, and they are expanding faster than a "speeding bullet " ( so to speak ). On another topic, I would not be surprised to
see them start purchasing the Cole shares when they become public. ( Just a guess ).
I own both symbols POST spin-off. that is, I purchased the WI shares for my acct at TD Ameritrade.
The NRZ shares are showing in the account correctly and I can buy or sell. The NCT symbol is NOT showing in the account, so I can buy, but not sell. I expect they will show up overnight. However, my account TOTAL BALANCE is correct, so the shares are in the reorganization function at this time. Other comments that state they see their NCT shares in their TD Ameritrade account are probably just earlier in the que. This whole process has caused havoc depending on ones brokerage firm as they all handled it differently. and the porblem was the way NCT performed the spin-off ( EXTREMELY POORLY ).
Please use common sense. the prices mentioned are after the separation. currently the two W.I. shares added together are equal to the NCT share price.. within a few cents, and will remain at those levels until after the two companies trade separately. I am NOT an owner but am looking to purchase when separate trading occurs. I sold NCT prior to the so-called special dividend ( separation) went into effect. I hope separate trading is begun on May 16 or soon thereafter. That is when you will see what each portion is worth in the market.
The point was that the company itself in its filings stated the spinoff was a "special taxable event ". There are those of us who wish to avoid such matters entirely. So I personally sold my shares ( at a nice gain ), applied the gain to offset previous losses, and will look at the two companies post separation to see if either or both are worthwhile buys to me. Each investor has his/her own situation and own method and, as stated, I have no desire to get involved in what may turn out to be a complicated tax issue. Now I have a clean gain and if I repurchase shares of NCT and/or NZR, a clean cost basis . Furthermore I used the funds to purchase a new preferred that I was interested in, so fo me, it was the best way to go. I certainly do not fault those investors who did not care about the tax implications if they wish to deal with them. Thanks
NRZ is already trading. The symbol is NRZWI. NCT symbol without the spin- off is NCTWI. NCT symbol including spinoff is NCT. Just look at the latest SEC filing on the NCT website. I own none of these as I sold my NCT when the situation got too complex for me to understand. The WI shares are not on broker sites so you have to phone to trade. They are all listed on the NYSE website. Nothing to disclose.
I believe that you are incorrect. Whatever the tax treatment of the dividend, the cost adjusted basis depends on what percentage of the assets of NCT get placed into NRZ. It is not a 50-50 split unless the assets are split evenly. The whole situation was poorly planned ( for shareholders ) and I sold all shares Monday to get out of having to deal with the potential tax mess. I plan to look again May 16 to see what the situation looks like. Only own what you understand.
Your broker can issue whatever statement they wish to their clients, but if NCT files the spinoff dividend as a
special taxable event with the IRS, good luck evading an audit when you don't comply. Your broker cannot make a decision for a company. i hope that it turns out ok for you.
I will be glad to respond. I SOLD all of my shares Monday, ( at a large gain ). i hope that helps you.
I personally want to know exactly what I own and I have no desire to get involved with tax ( confusion ) issues between, me, the company(s), my broker, my CPA, and the IRS. I will see what the situation looks like on May 16. NO company is indispensible and NCT has taken the shareholders over the coals with their idiotic treatment of this spin off. There are thousands of companies stocks available. Why should anyone get involved in this mess if they do not have to. Any investor who wished to hold their shares, or purchase more,can take pot luck with the tax ramifications. I'll
be back ( maybe ), as I have many other places to invest the funds. Thanks
Sorry, Mreitcmbs, I never opened your whole statement. I just assumed you were agreeing with the previous writer who stated the spin-off was an involuntary conversion, which I believe is wrong. That you were stating refer to irs section 355 spinoff. The drawback I see is that we are pretty much at the mercy of our respective brokerage firms and their interpretation of the situation. I have already experienced a few cost basis variances with
the firm in my 2012 taxes and I am positive that my cost basis figures are correct. but they send their data to the IRS and have no intention of getting involved with an audit over differences that amount to a few hundred dollars. My CPA charges that much an hour
So I lose either way, right or wrong. Again, you are correct and I mis-spoke.
A review of the IRS tax code shows explicitly that this spinoff is NOT an involuntary conversion. You are presenting misinformation to other readers. It isn't even close to the IRS definition of an involuntary conversion.
That IRS section absolutely does not apply. This spin off does NOT meet the requirements being discussed. NRZ is/ was not a subsidiary and had not been in business for 5 years, to begin with. Please don't write inaccurate information and give readers incorrect tax treatment data. Anyone reading the link you provided can see within a couple of minutes that you are mistaken. You should rescind your guidance. Thank you.
So, are you saying that this is NOT a special taxable event and there is not a dividend to be considered. Only asking because it is completely contrary to the IR releases from NCT. Frankly, your guidance makes a lot more sense than the companies does. I cannot imagine how this can be considered a "dividend" when the company simply splits into two parts. However, are we not at the mercy of our respective brokerage firms.
They report to the IRS.
It's all well and good until you realize that the company ( NCT ) has reported a completely different data set to the IRS for 2013 for 2013 tax purposes and your filing is completely different. notwithstanding how your brokerage firm reports it. I just went through this situation where my completely accurate figures disagreed with those the broker reported
for 2012 ( in a few instances).
My accountant said use the brokerage firm figures and thus no chance to trigger an audit.
If you feel like having to prove your point during an IRS audit, then more power to you. i do not. I have already contacted my brokerage firm for guidance.
Is the original cost basis of NCT changed by this spin off. NCT Investor relation literature discusses
the cost basis of the new shares and the fact that the spin off is a taxable distribution, but I cannot locate any discussion regarding NCT original share price. Thanks for help.
If you received shares of NRZ, then you better check what Country they are from, because they definitely are not shares spun off from NCT, which hasn't taken place yet. April FOOL's day was on the 1st.
Stonemore is a Master Limited Partnership and their profitability is not measured by the same criteria as normal corporations. If you will do your research you will see how their profits/losses are measured.
Better to wait and see exactly what components each symbol is comprised of, the cost basis, and the dividend for each, unless you already are aware of these numbers. Patience is a virtue someone once said. Not much patience on this board.