The Art Of The Spin: New Rules Of The Road In 2017
What is a tax-free spin-off? Simply put, it is a distribution by a corporation ("Parent") of stock of a subsidiary ("Spinco") to its shareholders. If done properly, none of Parent, Spinco or Parent's shareholders have any tax on the transaction. The spin-off is an increasingly important tax planning technique. There are, after all, very few ways that companies can dispose of highly appreciated assets without paying corporate tax.