Dividend in the form of another stock...what do I owe in taxes?

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Dividend in the form of another stock...what do I owe in taxes?

<!-- SC_OFF --><div class="md"><p>I own a number of shares of exelon corp and they recently had a split where a new company was created and a dividend paid in the form of shares in the new company. My question is, if I sell these new shares what would I need to pay in taxes? My normal income tax rate? If I hold them for a year is it all then long term capital gains? The information site says the dividend is tax free but I didn't understand if that was just for receiving the stock...</p> <p><a href="https://www.exeloncorp.com/separationfacts">https://www.exeloncorp.com/separationfacts</a></p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/raineslc"> /u/raineslc </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/sv8ozk/dividend_in_the_form_of_another_stockwhat_do_i/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/sv8ozk/dividend_in_the_form_of_another_stockwhat_do_i/">[comments]</a></span>Kind Regards R