Tax Basis Worksheet
Please be aware that the information contained herein is general in nature and should not be construed to be legal, business, or tax advice. You should consult your personal tax advisor as to the particular tax consequences of each transaction highlighted here, including the applicability and effect of any state, local, and foreign tax laws.
Tax BNasis Information for Hanson PLC
Back in 1995, Hanson began several corporate actions which included spin-offs, mergers, and stock reissues, all of which greatly impacted the cost basis of an investors original and subsequent investment. Following is a summary of the tax implications of the corporate action.
On May 31, 1995, Hanson distributed to its shareholders 1 share of US Industries stock for every 100 shares of Hanson. The tax basis allocation (based upon average stock prices) is as follows:
Hanson
96.378 %
US Industries
3.622 %
TOTAL 100.000 %
On October 1, 1996, Hanson distributed shares of Millennium Chemical (1 share for every 70 shares) and Imperial Tobacco (10 shares for every 100 shares) to its shareholders. The tax basis allocation of the distributions is:
Hanson
61.175 %
Millennium Chemical
13.207 %
Imperial Tobacco
25.618 %
TOTAL 100.000 %
On February 24, 1997, Hanson merged its opertions with The Energy Group and then reissued shares of the new Hanson PLC. The tax basis allocation of that corporate action follows:
Hanson
38.590 %
The Energy Group
61.410 %
TOTAL
100.000 %