In December 1999, I received shares of Huttig Building Products, Inc., which was distributed by Crane in the form of a tax-free dividend. How do I allocate my original tax basis between my Crane Co. Common Stock and these Huttig shares?

Q:

In December 1999, I received shares of Huttig Building Products, Inc., which was distributed by Crane in the form of a tax-free dividend. How do I allocate my original tax basis between my Crane Co. Common Stock and these Huttig shares?

A:

The tax basis in the shares of Crane Co. Common Stock held by stockholders prior to the Distribution should be allocated 94.993% to Crane Common Stock and 5.007% to Huttig Building Products, Inc. shares including any fractional interest.