Was the Expedia, Inc. spin-off a tax free event for investors?
IAC’s spin-off of Expedia, Inc. was generally treated as a non-taxable event in the United States for federal tax purposes to holders of IAC common stock. IAC did not pursue a determination of eligibility for tax status in Canada or any other jurisdiction outside of the United States. Accordingly, each non-U.S. shareholder should consult his or her tax advisor to seek non-taxable status on an individual basis. For more information about the tax consequences of the spin-off, see the IAC/Expedia proxy statement dated June 20, 2005 (filed 6/17/05). 18.
