May 26, 2008

Foreign exchange currency trading – The individual shareholder is then entitled, as with any dividend payment received, to exclude from reportable income the first $50 of income dividends and to deduct 4 per cent of additional dividends received as provided in the income tax revision of 1954.

Also, long-term capital gains may be treated by the shareholder as long-term gains to himself, taxable at one-half the regular rate, with a maximum tax of 25 per cent. A stockholder who received a dividend representing capital gains may report the income as a long-term gain even if he has held the underlying stock less than six months. As described elsewhere, many open-end companies permit stockholders to receive dividends in the form of stock. No matter whether dividends are taken in cash or reinvested in additional shares they are subject to federal income taxes. An important provision of tax law as it applies to capital gains and the investment company should be clarified. Under an amendment to the Internal Revenue Code that became effective on January 1, 1957, a regulated investment company may elect to retain long-term capital gains and pay a 25 per cent tax on such gains for the account of its stockholders.

Foreign exchange currency trading – The individual shareholder is then entitled, as with any dividend payment received, to exclude from reportable income the first $50 of income dividends and to deduct 4 per cent of additional dividends received as provided in the income tax revision of 1954.

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