Leap Wireless Spin-Off
Requirements for a tax-free spin-off
Be engaged immediately after the spin-off in the active conduct of a trade or business
Have actively conducted such trade of business throughout the 5-year period ending on the date of the spin-off
Requirements that were not met
Leap was not considered to be actively engaged in a trade of business
Substantially, all of its assets consisted of stock interest in corporations that it did not control (ᢈ% ownership requirement)