Assuming the Return of Capital
had been made as at 30 June 2006, on a pro forma
If a corporation purchases its stock back from a shareholder, and the transaction does not fit one of the listed circumstances, the distribution will be characterized as either a dividend, a return of capital
or capital gain under Sec.
The return of capital
does not constitute income, as there is no economic gain or accession to wealth.
In addition, as discussed below, the Trust will make a partial return of capital
distribution of $.
This month's column summarizes three SOPs on investment company accounting for high-yield debt securities; income, capital gain and return of capital
distributions; and foreign currency and another SOP that rescinds Accounting Principles Board statements.
Management expects that the dividends paid for February, March and April, will consist entirely of a return of capital
This article summarizes the relevant rules for characterizing such damages or settlements as ordinary income, capital gain, nontaxable return of capital
or fully taxable punitive damages.
The "special" return of capital
represents the effective beginning of the Fund's liquidation phase.
To the extent that the aggregate amount distributed by the Fund based on a fixed percentage of its net asset value exceeds its current and accumulated earnings and profits, the amount of that excess would constitute a return of capital
or net realized capital gains for tax purposes.
shareholder's return of capital
could be taxed as ordinary income.
In addition, the Trust will make a partial return of capital
distribution of $.
Tax Characteristics Estimates: The latest estimates of the tax characteristics of the fund's monthly distributions, including net investment income, realized and unrealized capital gains, and/or return of capital