Forum Archive Index - September 2000

["Risk" <zfar@hotmail.com>]

Yes, I also received these shares, and have been watching their meteoric
rise since august.
They have more than doubled in value since then!

I have a tax question regarding selling this or any other share that I
received for "free":

I am a trader, so I purchase shares for the sole purpose of making a profit.
But i did not purchase AMV....they were given to me (in this case by a
company i did purchase, but it could just as easily have been given to me by
a relative etc)
If I sell these shares, do I have to pay tax on the capital gain (which
basically means tax on the whole amount, since they cost me nothing)???

Also, sometimes when I receive 'free' shares, I get a letter saying they are
treated as a NIL dividend and carry no imputation credits.  What exactly
does this mean in relation to selling them and the taxation on this???

any answers or comments will be greatly appreciated.

thanks

Rick



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