Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : XLA or SCF from Mass. to Burmuda -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (775)	12/12/2000 8:01:10 AM
From: RockyBalboa	Respond to of 1116

I suppose that, as in other cases of "large" dividends (>25% of the stock value) the value of the stock after & the payment is usually slightly acreetive. This must especially be true for XLA as an inherent liability is removed. Would be interesting whether a exempted non-us entity (channel isld company) having XLA shares in street name at a U.S. domiciled broker gets the distribution anyway and does not pay any tax (neither cap gains tax nor tax on the distribution, if any). ...

To: Mama Bear who wrote (775)	12/13/2000 8:27:15 AM
From: Labrador	Read Replies (1) \| Respond to of 1116

I would suspect that the distribution would be taxable in entirety, so wouldn't one need more than 40% to pay the taxes, if one is in the maximum tax bracket? I think that the distribution would be taxable to the extent of the current year's earnings, offset by last year's [only] loss carryforward. So I'd think that one would have to "gross up" the 40% distribution by taxes to make one whole. income/[1.00-40%]=67% Distribution. Say income was $100, then distribution should be $67, then subtract taxes on distribution of $27[$67 x 40%] = $40 net to pay the tax.