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Recent Developments Involving Hedges, Collars, and Microsoft Dividends  


Author:  Robert Gordon.


Source: Volume 22, Number 02, Winter 2005 , pp.169-173(5)




Journal of Taxation of Investments

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Abstract: 

A review of recent IRS rulings, including Field Attorney Advice on prepaid forward sales; a private letter ruling on the use of borrowed stock to close collars; and the author’s analysis of the tax rate applicable to a dividend like Microsoft’s July 2004 distribution, which posed an interesting choice for investors seeking a tax-efficient dividend capture stock purchase.

Keywords: FAA20042305F; Collar Transactions; PLR 200440005; Dividend Capture.

Affiliations:  1: Twenty-First Securities.

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