Company: LBRDK
Filing Date: 2025-01-17
Form Type: PRER14A
Source: 0001140361-25-001417
Chunk: 302

Company: Liberty Broadband Corp
Filing Date: 2025-01-17
Form: PRER14A
Chunk 302
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 shares of Liberty Broadband capital stock at different times or at different prices, any gain with respect to such U.S. holder’s Liberty Broadband common stock will be determined separately with respect to each block of shares of Liberty Broadband common stock, and such U.S. holder’s basis and holding period in its shares of Charter capital stock may be determined with reference to each block of shares of Liberty Broadband capital stock. Any such holder should consult his, her or its tax advisors regarding the manner in which shares of Charter capital stock received in the combination (including any fractional shares of Charter Class A common stock deemed received and sold for cash, as discussed below) should be allocated among different blocks of shares of Liberty Broadband capital stock, the manner in which any shares of GCI spinco treated as received in the GCI divestiture should be allocated among different blocks of shares of Liberty Broadband common stock, and with respect to identifying the bases and holding periods of the particular shares of Charter capital stock received. A U.S. holder that receives cash in lieu of a fractional share of Charter Class A common stock will generally be treated as having received the fractional share pursuant to the combination, and then as having sold such fractional share for cash. As a result, such U.S. holder will generally recognize gain or loss equal to the difference between the amount of cash received and the tax basis allocated to such fractional share of Charter Class A common stock. Such gain or loss generally will be long-term capital gain or loss if, as of the effective date of the combination, the holding period for such fractional share (as described above) exceeds one year. The deductibility of capital losses is subject to limitation. If, at the time of the combination, a dividend has been declared but not yet paid with respect to the Liberty Broadband preferred stock, a portion of the Charter rollover preferred stock received in exchange for the Liberty Broadband preferred stock that is attributable to the amount of the declared but not yet paid dividend will be treated as a distribution with respect to the Liberty Broadband preferred stock. Such a distribution will be taxable as a dividend to the extent of (i) Liberty Broadband’s current earnings and profits for the taxable year in which the combination occurs and (ii) Liberty Broadband’s accumulated earnings and profits. Any amount distributed in excess of Liberty Broadband’s earnings and profits (current or accumulated) would generally be a return of capital that reduces such U.S. Holder’s adjusted tax basis in their Liberty Broadband preferred stock, with any distributed amount