Yahoo

[CityFarmer]

Yahoo investors, may get less than expected from Alibaba, due to the taxes. It should be a substantial tax burden on the capital gain of $23 billion...

(not vested)

Yahoo may have to pay taxes on Alibaba spinoff

Yahoo Inc may have to pay taxes on the $23 billion it hopes to get from the planned spinoff of its stake in Alibaba Group Holdings Ltd , threatening a key element of Chief Executive Officer Marissa Mayer's turnaround strategy.

Yahoo said Tuesday the U.S. Internal Revenue Service (IRS) had denied the company's request for a private letter ruling on whether the spinoff of its stake in the Chinese e-commerce giant would be considered tax free.

Yahoo's shares fell as much as 15.8 percent after the announcement but they pared their losses later in extended trading and were down about 3 percent.

Despite the IRS denial of the letter, Yahoo said the IRS had not concluded the transaction would be taxable. The company said it would weigh its options, including proceeding with the spinoff, according to a regulatory filing.
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http://www.todayonline.com/business/yaho...ba-spinoff