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Non-Tech : Income Investing

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Jerrymac
To: Lord Xot who wrote (10795)7/3/2014 7:24:23 AM
From: MRothaus13 Recommendations  Read Replies (1) of 52052
 
Re: GST-B

One more issue with GST-B is that it is expected that the dividends will be characterized as ROC (return of capital). This could be a positive or a negative, depending on your individual situation.

In my case, it is a positive, since I have carryforwards of capital losses, so capital gains are especially attractive to me. With GST-B, not only has the actual price appreciated, but I won't pay taxes on the dividends since they will just add to the capital gains.

I probably will still sell my GST-B and invest elsewhere, but the decision is more complicated because of the ROC characteristics of the dividend.
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