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Microcap & Penny Stocks : WCAP - Winfield Capital: Insider buying -- Ignore unavailable to you. Want to Upgrade?

To: Jason Compson who wrote (1087)	7/14/1999 4:34:00 PM
From: Top Jim	Read Replies (2) \| Respond to of 1305

Jason, is TAXI a subchapter M? Past financial history on WCAP shows no fed taxes have been incurred including this year which had a realized gain of $740K. I've never heard of anyone, including myself, receiving a statement of income based on their long position. Perhaps a CPA versed in subchapter M's can decipher the legalese below but for now the empirical data and CEO's confirmation works for me. From WCAP's 10K: Income Taxes Effective April 1, 1996, the Company has elected to be taxed as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code (the "Code"). If the Company, as a RIC, satisfies certain requirements relating to the source of its income, the diversification of its assets and the distribution of its net income, the Company is taxed as a pass-through entity which acts as a partial conduit of income to its shareholders. In order to maintain its RIC status, the Company must in general: a) derive at least 90% of its gross income from dividends, interest and gains from the sale or disposition of securities b) meet investment diversification requirements defined by the Code and c) distribute to shareholders 90% of its net income (other than long-term capital gains). Pursuant to Statement of Position 93-2, "Determination, Disclosure, and Financial Statement Presentation of Income, Gain, and Return of Capital Distributions by Investment Companies," ("SOP 93-2"), the Company may periodically make reclassifications among certain of their capital accounts as a result of timing and characterization of certain income and capital gains distributions determined annually in accordance with federal tax regulation.