Hey, Creekrat, I wasn't able to keep up w posts today, but I did want to respond to this post.
In my opinion, we would have to pay capital gains on the entire value of all of the dividends, since they were free. The LTCG clock would start when we receive the shares, regardless of the value. With NGIO, the question is, when did/do we really receive the shares?
What some of us have now from the first 1:4 div may not qualify as "shares", as we can't do anything with them, and the company really doesn't exist yet. Anyone have other thoughts on that?
So it would seem to me that our LTCG clock would start for those 1:4 shares as well as the upcoming 2:5 shares when NGIO actually is an independent company and the shares under that company name and matching CUSIP are in our accounts.
That could be a positive thing, if accurate, as it might keep people from heading for the door immediately after the NGIO spin.
Anyone have thoughts or any better interpretation on this?
Speaking of selling, we would have to wait a year from Feb 27 (pay date) to only pay long term capital gains on our dividends. Not sure how that works for the 2 sets of NGIO dividends. Does the clock start when a value is assigned, or when we received them? The original NGIO dividends are already about 1 year old.
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