Hop, you have been negative on the Abt, Abbv and Hsp message boards for years. We do not know what your problems are with these companies other than possibly a early terminated employee or a very unhappy stockholder. If you are an unhappy stockholder than there is a easy solution...Sell. If you are a unhappy past employee than get a life and move on. Credibility is not want of your strong suits on this board.
H, the Abbvie will not be a accounting nightmare. It will be handled the same way as selling all the shares an showing the income as a capital gain. If you would need money to pay taxes sell some shares and keep the rest. You can still offset gains with other losses if you so desire.
Same info that I received from my tax advisers. Also, make certain that what ever year the inversion takes place that you pay state and local taxes in the same year so you can claim the state and local taxes in that same year on your Federal taxes. Makes a difference if you write the fourth Qtr checks on Dec. 31st or Jan. 1st since most of us are on a cash basis. If you wait until Jan 1st you could have ATM increases.The increase AMT amounted over $20,000 for me. Also, you have until April 15th to pay the Federal portion with no penalty. This can allow you to hold the stock for an extra quarter (for those that need to sell some to pay the taxes) to receive the dividends on those share that you may need to sell.
Agree, still looks like an attractive deal. May have over paid some with out the tax advantages. Need new products to offset Humeria. Cash flow for Shire sales in U.S. looks pretty good and should help out Abbvie to stop bringing cash into the U.S. for Dividends, Debt and expansions. It should be a tax free event for shareholders of Abbvie as long as they do not Pull in old shares and re-issue as a new corporation.
Could have a direct impact on the $5.2 Billion sale of some of their Established Pharmaceutical Products to Mylan if Mylan can not do an inversion due to the sale. That is a pretty good size impact.
Ever notice how no one pays any attention to you? Take your sour grapes and make some wine. Maybe that will make you happy.
I live in Ohio. My state and federal tax rate will be around 30%. My costs basis is very low so most of the value of the Abbvie holdings at the time of reissue will be taxed.
Klebad, if a holder must sell shares to pay the tax then the holder forever looses any future gains and dividends on those shares sold. State, local and federal tax liability can be as much as 30% of total value of Abbvie holdings depending on your cost basis in the stock. Some long time Abbott holders have very low cost basis due to several stock splits. Of course the tax is only for non-defered tax accounts. Also, if stock is held for inheritance purposes the cost basis would also be reset and the holder looses this tax advantage.
Boited, still waiting for your reply from your previous post. Your credibility has quickly been eroded.
No different than any other company doing inversions. It is an executive perk and it keeps personal tax consequences out of their decision making process.
If you are holding limited partnership units do you still receive the same dividend? Will the dividend be taxed as a qualified or non-qualified dividend? Can you convert the limited partnership units to shares and if so when or do you have to sell the partnership units to other partners and than buy the stock? How will any gain or loss at time of the conversion or sale be taxed? What is the tax treatment at time of death for limited partnership units? Do the units get treated the same as stocks and get reset for the cost basis for inheritance? As you can tell I am not familiar with limited partnerships and how they are taxed.
Sounds like you have been eating a lot of sour grapes. Hope your opinion does not give you indigestion. CEO's jobs are not to play politics but to invest in the future of the company and make stockholders money.
Inversion has nothing to do with moving anyone to Ireland. If outsourcing some support services is cost effective, more power to them.
Your medicare premiums could possible increase due to the forced capital gains due to inversion. You also may have to pay an 3.8% increase on your tax rate in the year of capital gain if you hit the threshold due to Obama Care on high wage earners, not to mention loss of expense deductions and exemptions.
I do not know too many people still carrying forward losses in the last couple of years. Even my dogs are running a good race.
You are exactly correct. If you have been a long time share holder in Abbott and have a low cost basis in
Abbvie your tax bill ( Including capital gains on the high end 20%; 3.8% Obama Care Premium, plus your state and local taxes) could be as much as 30% of the value of your Abbvie Shares less your cost basis. The only way I can afford to pay this tax liability is to sell 1/3 of my Abbvie Shares and lose forever the dividend on those sold shares. This same tax event has happened to Medtronic in their inversion. This wipes out a lot of the advantage of the Abbvie split for the original Abbot long term shareholders. No effect if your shares are in an IRA or 401K.
Dividends will be taxed based on what country you live in not where company is tax domiciled. Just like any other foreign company.