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Biotech / Medical : Stayhealthy.com: Monitoring your wellness on the Web -- Ignore unavailable to you. Want to Upgrade?

To: george eberting who wrote (895)	8/28/2000 5:06:26 PM
From: Jim Burnham	Read Replies (1) \| Respond to of 3785

Seems a bit funky to me. Yes, funky is a technical IRS term. The question you have to ask yourself is how did something of no value make it's way into her IRA? Jim

To: george eberting who wrote (895)	8/28/2000 5:10:37 PM
From: Eric Fader	Respond to of 3785

George - I'll leave the main part of your question for an accountant, but I don't see how you can take the position that the shares have no value even though they're not publicly tradable. I believe the current value of the shares, for tax purposes, is probably whatever the current private investors are paying for their shares. I'm sure these are old Avalon shares, and I'm guessing your wife's basis for them was somewhere between .20 and .30 which she should multiply by 8 to get her basis for the Stayhealthy shares. So there shouldn't be much, if any, current tax consequence, apart from the 10% penalty. Obviously, it will be 10% of a much smaller number than if she sells them after an IPO. -Eric