Hi Nick.
Best way to describe it to you is that your ITM shares have been taken out of the cost base of your AXE shares.
example: if you bought 10,000 AXE shares @ $1, your tax base is $10,000. With those 10,000 shares you would have received an in-specie distribution of 10,000 ITM shares worth $2,000. The tax base of AXE is now $8,000 and the tax base of ITM is now $2,000. There is no tax implications for the shares until you sell either your AXE/ITM shares. Hope this makes sense.
Add to My Watchlist
What is My Watchlist?
