Tax Information
Your U.S. federal income tax consequences of the exchange, pursuant to the Ford Motor Company recapitalization, known as the Value Enhancement Plan, will depend upon your particular circumstances. The following general discussion does not consider your particular facts and circumstances. You are strongly urged to consult your own tax advisor as to the tax consequences of the recapitalization (particularly if you made a new stock election).
No Cash Received
If you did not receive any cash in the recapitalization (you made a new stock election with respect to all of your shares actually owned), then you should not recognize any taxable gain or loss. The aggregate tax basis of the shares of new stock, you received in the recapitalization, will equal the aggregate tax basis of the shares of old stock you surrendered in the recapitalization. Your holding period of the new stock will include your holding period of the old stock that you surrendered in the recapitalization.
Treatment of Cash Received
If you received a combination of cash and new stock in the recapitalization, download the pdf version of full instructions, calculation worksheet, and forms, which must be filed with the U.S. Internal Revenue Service.
