Re: Cost of K shares - boardlot
in response to
by
posted on
Jan 23, 2009 12:57PM
Third largest primary Gold Producer in North America
OK thanks board, I found my original post and here it is (copied)
Your question kept bugging me, busy or no busy. This a lot of wordage but here it is. Hope this helps.
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Your question kept bugging me, busy or no busy. This a lot of wordage but here it is.
First Canada Revenue Agency issued a bulletin based on the price of Kinross shares effective the day they announced the deal. That was $15.70 a share.
CRAs values for tax purposes (see below) is $13.80 for the share and $1.90 for the warrant.
BUT I didn't pay that - I paid $8,405 for 2,000 Aurelian.
So, I used CRAs ratio of their two figures to the total and came up with 87.9% for the shares and 12.1% for the warrants.
Using these percentages on my original dollar cost ($8,405) I get $7,387 and $1,017.
Dividing these by the Kinross units I received from my 2,000 shares of Aurelian - 634 and 285 I get $11.651 and $3.572
Voila!
************************************... Here's my original post on the tax ruling
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"I've just found this and it looks very important for us. Seems like we have to file a tax deferral election. Incidently, they say the Fair Market Value as of September 15th, 2008 is : Kinross common $ 13.80 and Kinross warrant $1.90.
They don't show the September 29th (extension date) FMV or even if it is any different than that of Sept 15th.
I don't know how to simply post the link here (I've tried). I found ita as a news item on Yahoo's summary of Kinross stock price etc. The title is Aurelian Resources Inc. Tax Election Questionaire Website. Maybe even a "Google" will do it."
HOPE ALL THIS HELPS FOLKS - Don't to file the tax deferral - talk to your brokers.
verno75
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