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SEC Filings

S-1/A
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form S-1/A on 11/04/1999
Entire Document
 
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         (3) the non-U.S. holder is an individual who holds the Class A common
     stock as a capital asset within the meaning of Section 1221 of the Internal
     Revenue Code, is present in the United States for 183 or more days in the
     taxable year of the disposition and meets certain other tax law
     requirements,
 
         (4) the non-U.S. holder is a United States expatriate required to pay
     tax pursuant to the provisions of United States tax law, or
 
         (5) we are or have been a "United States real property holding
     corporation" for federal income tax purposes at any time during the shorter
     of the five-year period preceding such disposition or the period that the
     non-U.S. holder holds the common stock.
 
     Generally, a corporation is a United States real property holding
corporation if the fair market value of its United States real property
interests equals or exceeds 50% of the sum of the fair market value of its
worldwide real property interests plus its other assets used or held for use in
a trade or business.
 
     We believe that we are not, have not been and do not anticipate becoming, a
United States real property holding corporation for United States federal income
tax purposes. However, even if we were to become a United States real property
holding corporation, any gain realized by a non-U.S. holder still would not be
subject to United States federal income tax if our shares are regularly traded
on an established securities market and the non-U.S. holder did not own,
directly or indirectly, at any time during the five-year period ending on the
date of sale or other disposition, more than 5% of our Class A common stock. If,
however, our stock is not so treated, on a sale or disposition by a non-U.S.
holder of our Class A common stock, the transferee of such stock will be
required to withhold 10% of the proceeds unless we certify that either we are
not and have not been a United States real property holding company or another
exemption from withholding applies.
 
     A non-U.S. holder who is an individual and meets the requirements of clause
(1), (2) or (4) above will be required to pay tax on the net gain derived from a
sale of Class A common stock at regular graduated United States federal income
tax rates. Further, a non-U.S. holder who is an individual and who meets the
requirements of clause (3) above generally will be subject to a flat 30% tax on
the gain derived from a sale. Thus, individual non-U.S. holders who have spent
or expect to spend a short period of time in the United States should consult
their tax advisors prior to the sale of Class A common stock to determine the
United States federal income tax consequences of the sale. A non-U.S. holder who
is a corporation and who meets the requirements of clause (1) or (2) above
generally will be required to pay tax on its net gain at regular graduated
United States federal income tax rates. Such non-U.S. holder may also have to
pay a branch profits tax.
 
FEDERAL ESTATE TAX
 
     For United States federal estate tax purposes, an individual's gross estate
will include the Class A common stock owned, or treated as owned, by an
individual. Generally, this will be the case regardless of whether such
individual was a United
 
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