Re: Unit Investment Trusts
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Posted by Mark on June 26, 1999 at 10:14:48:
In Reply to: Re: Unit Investment Trusts posted by Dennis Kowallek on June 26, 1999 at 07:01:29:
: : The details of how to record this are probably the same as however the
: : accounting works... If you only sell some of your original purchase, do
: : the same in FM. Through whatever combinations of sells/buys you really
: : go through to end up with the 11,000 shares at 1.00 each, you should enter
: : just the same information. From your description it isn't quite clear to
: : me how you get there though... : That's what's difficult to explain. You ACTUALLY sell all the old shares (10,000
: at $1.10) and buy all new shares (11,000 at $1.00) in the new series. You may
: end up buying 1,100 shares at $10.00 if that's how they decided to price the new Hi Dennis,
In this case you would sell the 10000 shares at 1.10, and buy the new
11000 shares at 1.00. You may want to make this into a new investment
if they have a different name/symbol. : series. In other words, the pricing of the new series has absolutely nothing
: to do with that of the old series. For the purpose of cap gains, the Unit Trust
: treats it AS IF you only sold the stock in the old series which DID NOT rollover
: to the new series. : In reality, it is much more complicated because all 10 stocks do not appreciate
: equally and some selling and buying must take place to rebalance the new
: series. If it is different than above, then it would require understanding these
complication, and recording it however the series of transaction occurs. : Apparently 1999 was the 1st year you could choose to do it this way. Previously
: your only choice was to treat it as a complete sale and purchase (and pay the
: taxes on the $1000 cap gain). At the end of this year I should receive a
: statement from the Unit Trust with the details on what to report to the IRS. : Maybe UIT needs to be its own Investment Type in Fund Manager with special
: rollover logic. I'm not certain I understand the special logic that would be required... : Thanks, : Dennis Thanks,
Mark
--
Mark Beiley
Fund Manager for Windows 3.1x/95/98/NT
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