CSHK CASHCO MANAGEMENT Y2K Message Board

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Microcap & Penny Stocks : CSHK CASHCO MANAGEMENT Y2K

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To: jhild who wrote (5749)	11/6/1998 3:20:00 PM
From: John Chapman	Read Replies (2) of 7491

I do not know. You could very well be right. I undersatnd it will be in shares of Brooks, but then it is called a dividend. I guess even though it would be called a dividend as long as the shares are not sold there could be no actual gain. If that is the case, there is no difference in this "dividend" and a normal split. Come to think of it, what you say is logical because otherwise how would the IRS value the gain. There really is no value to tax until shares are sold. This is all conjecture and the IRS is very illogical at times so I had better consult with the tax guy. Hypothetical question: 50,000 shares @.10 pre spin off equals 50,000 shares @.10 of Cashco plus 10,000 shares of Brooks at $1.50 post spin off. Portfolio value pre spin off = $5,000. Portfolio value post spin off = $20,000. Is the $15,000 only a paper gain or a taxable gain.

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