Another important factor is that you need to pay attention to the allocation in the year this change occurs.
This is due to the fact that the allocation needs to be done on a per share per day allocation.
In addition, you will need to pay attention to any distributions and make sure you document the support for how the distributions were determined as a result of the varying interest. Depending on the timing of any distributions, they may appear non prorata and you may receive a notice (or paper audit) as a result. That is why it is important to document the time period that the distributions are related to which supports that the distributions are indeed prorata.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
