Based on this approach, an Abbott Shareholder's aggregate tax basis in his or her Abbott common shares would be allocated between the Abbott common shares and the shares of AbbVie common stock pursuant to the following allocation percentages:
- 47.9751% to Abbott common shares (US$ 32.045 / (US$ 32.045 + US$ 34.75)).
- 52.0249% to shares of AbbVie common stock (US$ 34.75 / (US$ 32.045 + US$ 34.75)).
Other approaches to determine fair market value may also be possible, and you should determine, in consultation with your own tax advisor, what approach to use
Another question I've seen asked regards taxes on the distribution of AbbVie shares:
Abbott received a private letter ruling from the U.S. Internal Revenue Service ("IRS") that, subject to the representations and limitations therein, the receipt of AbbVie common stock by Abbott Shareholders pursuant to the Distribution will qualify for non-recognition treatment under section 355 of the Code. Under such treatment, Abbott Shareholders will not incur U.S. federal income tax upon the receipt of shares of AbbVie common stock, except that gain or loss will be recognized in an amount equal to the difference between any cash received in lieu of a fractional share of AbbVie common stock and the tax basis of such fractional share.
Hope that helps. Perhaps it had already been posted elsewhere, but I've not had time to keep up with posts lately, or to do much of a search...