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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: Kaye Thomas who wrote (1231)	10/21/2000 11:30:06 PM
From: rjm2	Respond to of 1383

Does anyone know anything about trusts & such ? A stock I own a position in, the chairman & majority owner apparently swapped his shares from one trust to another after nearly 20 years. Can/should one read anything into this or is it a non-event ? The reason I ask is that I believe its possible they want to take the company private since it trades at a fraction of tangible book value. Its not a certainty by any means but easily possible. Does this 13g transaction mean anything ? "ITEM 4. OWNERSHIP. (a) The shares of Common Stock were originally owned by 375 South Eaton Limited Partnership. Mr. Erb is the sole general partner of 375 South Eaton Limited Partnership. The shares were then transferred to the Trust. Mr. Erb is the grantor of the Trust. As a result, pursuant to Rule 13d-3(a), Mr. Erb is deemed to be the beneficial owner of the Common Stock owned by the Trust for the purposes of this Statement. Nevertheless, Mr. Erb specifically disclaims beneficial ownership of the Common Stock owned by the Trust except to the extent of his pecuniary interest in such Common Stock. (b) The 4,410,000 shares of Common Stock owned by the Trust represent approximately sixty and six tenths percent (60.6%) of the issued and outstanding Common Stock. As the Trustee of the Trust, Mr. Erb has the power to vote or direct the vote of 4,410,000 shares of Common Stock." 10kwizard.ragingbull.com Thanks for any help. Hope I did not intrude here, I just figured a few tax pros could easily answer.

To: Kaye Thomas who wrote (1231)	11/19/2000 8:16:29 PM
From: Cooters	Read Replies (1) \| Respond to of 1383

I am unclear on the following. Does this mean the designation as a trader does not necessarily result in employment taxes? Thanks, Cooters <<Regardless of whether a trader reports his or her gains and losses on Sched-ules D and D-1 or Form 4797, the gain or loss from the disposition of securities is not taken into account when figuring net earn-ings from self-employment on Schedule SE. See the Instructions for Schedule SE for an exception that applies to section 1256 con-tracts. delivered to the lender to close the short sale. >>