Hi, thanks for your reply. I understand your reply, but the information given to us is conflicting.
The answer I received directly from META pertaining this stated the the ascribed value of the shares that META comes up with is not binding to any tax authority (this is stated on the S1 as well) meaning their value could be higher or lower then what the IRS deems or can differ from what shareholders think the stock is worth on “estimating the fair market value”.
Page. 32
Gain or Loss on the Spin-Off Treated as a Sale or Exchange of Series A Preferred Stock
“If the Spin-Off qualifies as a sale of Series A Preferred Stock, such U.S. holder generally will recognize capital gain or loss in an amount equal to the difference between (i) the fair market value of our Common Stock received by such U.S. holder in the Spin-Off and (ii) such U.S. holder’s adjusted tax basis in the Series A Preferred Stock surrendered in the Spin-Off.
Any such capital gain or loss generally will be long-term capital gain or loss if a U.S. holder’s holding period for the Series A Preferred Stock so disposed of exceeds one (1) year. Long-term capital gains recognized by non-corporate U.S. holders generally will be eligible for taxation at reduced rates. The deductibility of capital losses is subject to limitations.“
