Your basis for gain or loss would be $864 ($32 x 27) for the 27 shares of Eastman Chemical stock that is retained and $16.00 for the .5 fractional share that is sold.The above adjustments to basis apply to all shareholders who received Eastman Chemical stock, even if they sold their Kodak stock after the record date and before actual distribution of the Eastman Chemical stock to them.In determine whether you held Eastman Chemical stock for more than one year and thus realized long-term gain or loss upon its sale, the tax law provided that you add on to the period you held the Eastman Chemical stock the previous period during which you held the Kodak stock with respect to which you received the distribution of Eastman Chemical stock.The above information is provided for use in connection with the preparation of income tax returns in complying with the requirements of S1.355-5(b) of the Regulations of the U.S. Treasury.
Learn More. According to an IRS ruling dated December 8, 1993, requiring such allocation and the trading price of Kodak shares and Eastman Chemical shares on January 4, shareowners' cost basis for each share of Kodak stock, as a result of the distribution, should be reduced to 80% of its former amount; and the remaining 20% becomes the cost basis for Eastman Chemical stock received in the spin-off exchange. Find news, press releases, statements and other company information in the Kodak press center. Earnings Estimates First Call earnings estimates summary. Since no fractional shares of Eastman Chemical stock were issued, shareowners entitled to a fractional share received a check for its value based on the price received from the sale of fractional shares in the open market.To illustrate this, suppose you bought 100 shares of Kodak stock for $40.00 per share for a total of $4,000. As a result of the spin-off, shareowners of Kodak received one share of Eastman Chemical stock for each four shares of Kodak stock held. The Investor Relations website contains information about Eastman Kodak Company's business for stockholders, potential investors, and financial analysts. Learn More. In this illustration, your basis for gain or loss for the 25 shares of Eastman Chemical stock would be $800.Below is information regarding the cost basis for shares of stock as a result of the January 4, 1994, spin-off of Eastman Chemical Company from Eastman Kodak Company:To illustrate how the holding period works, suppose you bought 100 shares of Kodak stock in 1990 and another 50 shares in September 1993. Quarterly Results Quarterly financial releases and conference call presentations. But your gain or loss on the other 12.5 shares of Eastman Chemical stock would be short-term, because your holding period was less than one year, even when the period you held the block of 50 shares of Kodak stock is included.The Internal Revenue Service ruled that under existing law at the time of the spin-off, Kodak shareholders would incur no tax upon the receipt of stock of Eastman Chemical. Investor Resources: Corporate Governance: Conflict Minerals Disclosure: UK Tax Strategy Information: Home Company Investors Financial Information/Filings: Financial Information and Filings. As no fractional shares of Eastman Chemical stock were issued, your .5 share was sold as of January 4, 1994. It would be considered that you realized long-term gain or loss on the first block of 25 shares (since you add to the time you held the 100-share block of Kodak stock). Suppose you also sold the 37 shares of Eastman Chemical on July 15, 1994.