Capital Gains facts, of possible interest to MRPS'ers...
This information may already be well-known to many on this thread, but since I've never had to deal with capital-gains before it was NEW to me -- and I thought it might also be useful to at least a few others here.
I, like many folks, bought a number of MRPS shares at a low price (in my case, 9/16) and a number MORE at around $2. And since some people have been talking about selling off PART of their holdings at some point when the stock rises again, just to re-capture their original investment, I was curious as to the capital-gains effects of such sales. I had assumed that the gains on ANY shares sold would be based on the AVERAGED cost of all shares owned -- but apparently it's not that simple, and one could face a much-larger capital-gains "hit" than expected if the right procedures aren't followed. So anybody who's thinking of selling "some, but not all" of their shares should be aware of this.
Here's a link to an excellent explanation of what's involved. Although this particular document is dated August 1998, I'm assuming that the rules haven't changes since then (in anyone knows otherwise, please advise)...
fairmark.com
This Web-page is just one part of a terrific overall Tax/Investment Guide by Fairmark, which I've found invaluable in many areas. The home-page for the entire series (which comes to about 700 on-line pages, in all) is>
fairmark.com
Hope this might be of use to some fellow investors -- and I'd certainly welcome an further comments/advice on this subject.
vagabond |
