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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: vireya who wrote (96883)	2/16/2008 9:11:50 PM
From: a.handbag.	Respond to of 206145

I believe that when your adjusted cost base reaches zero you pay capital gains tax on subsequent distributions. This is less onerous than "taxes on those divvys as usual". The problem I have with the 100% ROC divvys from AOG.UN is that the best minds on SI can't explain how it's done. I do have a position.

To: vireya who wrote (96883)	2/17/2008 9:55:46 AM
From: Tommaso	Read Replies (4) \| Respond to of 206145

No, you cannot escape taxes by giving the shares to children, although children might be in a lower tax bracket. They must use the basis of the shares when you gave them. Also, you will be subject to gift tax if the amount exceeds $11,000 in value. I suppose that giving them to charity would (in US law) have the same effect as any gift of appreciated securities. You would get a deduction for the current value of the shares. Yes, it is possible to reach a zero basis, but that takes a long time and in the mean time you have tax-free income.