Recent Developments Involving Hedges, Collars, and Microsoft Dividends
Author: Robert Gordon.
Source: Volume 22, Number 02, Winter 2005 , pp.169-173(5)
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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.