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LYNCH INTERACTIVE CORPORATION SPINOFF TAX BASIS ALLOCATION April 8, 2002, To the Shareholders of Lynch Interactive Corporation common stock: As owners of Lynch Interactive Corporation (Lynch) common
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How to fill out spin-off tax basis allocation:

01
Gather all relevant documentation, including the spin-off tax basis allocation statement provided by the company initiating the spin-off.
02
Review the spin-off tax basis allocation statement to understand the breakdown of the assets and liabilities being transferred as part of the spin-off.
03
Identify the specific assets and liabilities that are being allocated to you as a result of the spin-off.
04
Determine the fair market value of the allocated assets and liabilities. This may involve consulting with experts or utilizing valuation methods approved by tax authorities.
05
Allocate the fair market value of the assets and liabilities to your tax basis. This involves updating your records to reflect the new values.
06
Review your tax forms, such as Form 8594 or Schedule D, to ensure the spin-off tax basis allocation is accurately reported.
07
Consult with a tax professional or seek guidance from the IRS if you have any questions or uncertainties regarding the spin-off tax basis allocation process.

Who needs spin-off tax basis allocation?

01
Shareholders or investors who have acquired shares of the company involved in the spin-off need spin-off tax basis allocation. They need to allocate the fair market value of the assets and liabilities received in the spin-off to properly determine their tax basis.
02
Companies or entities involved in a spin-off also require spin-off tax basis allocation for financial reporting purposes and to determine the appropriate tax treatment of the transaction.
03
Tax professionals or consultants may also require spin-off tax basis allocation to assist shareholders or companies in accurately reporting the spin-off transaction on their tax forms and complying with relevant tax laws.
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Spin-off tax basis allocation is the process of allocating the tax basis of assets and liabilities when a company spins off a subsidiary.
The parent company that is spinning off a subsidiary is required to file spin-off tax basis allocation.
Spin-off tax basis allocation is typically filled out using IRS Form 8883 and following the instructions provided.
The purpose of spin-off tax basis allocation is to determine the tax consequences of the spin-off for both the parent company and the subsidiary.
On spin-off tax basis allocation, information such as the tax basis of assets and liabilities, fair market value, and any adjustments made must be reported.
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