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Financial Planning / Tax Strategies


Subject:  Re: Dividend, stock price & capital gain Date:  2/11/2006  9:18 PM
Author:  irasmilo Number:  83830 of 124817

Any portion of the special dividend in excess of each holder's pro rata share of TD AMERITRADE's earnings and profits will be treated first as a tax-free return of capital up to each holder's basis in its shares of TD AMERITRADE common stock, with any remainder treated as a capital gain.

Right. If you purchased the stock for less than $4/share, you'd recognize some gain.


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