[MDC]

Jerome said
Um, where are you based??? How can you be taxed on a dividend in this case? It is not an exceptional dividend but a spin-off, namely that the former Abbott company is split in two, at the same time as its capital, distributed between the two new companies ABT and ABBV. There is no reason to tax this separation.

 

I sold ABBV with a slight capital gain, which I partially ate up in sales and ABT buyback fees. It's not my usual style of trading like that, but if I want to be consistent with my strategy, it's the only way. And let's say it right away, spin-offs are fortunately rare, because I personally don't like them. In the end, by selling ABBV to buy back ABT, it's as if there had been a simple split of my ABTs, accounting-wise. Of course, the "ABT" stock is no longer quite the same as it was last year...

Good morning!

 

Looking for information on the possible price to pay, I found your explanation which corroborates my concept of a spin-off… i.e. division and not dividend… therefore no costs.

Except that in Belgium, a priori, the bank considers the operation as an exceptional dividend and deducts the equivalent of 25%!!!

As this is a very substantial financial 'drain', could you confirm that there was no need to apply these fees? Where can I find a black and white regulation to argue with the banker?

Thank you in advance for your help.

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