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Financial Planning / Tax Strategies


Subject:  Re: Another UIT question Date:  2/1/2001  6:16 PM
Author:  Crosenfield Number:  45351 of 133505

I would expect that yes, counting the basis as equal to the sum on the 1099, which the return of principal, would reduce the remaining basis in the investment.
One would figure return of principal on a mortgage one owns as an investment similarly.
After the distribution the price of the units dropped by that amount.
I don't know whether the UIT originally bought the bond in question at par, a discount, or a premium. They didn't tell me. The final maturity of the trust isn't until 2007. Seems more sensible to me to declare zero capital gain and reduce my basis than to say zero basis and get a bunch of tax back in 2008.
Thanks for the thoughts! Chris
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