Investors & landlords

The IRS takes the position that your basis in the shares received is $0.  This issue has been litigated in the courts with conflicting results, but the IRS has not changed its position.

https://www.irs.gov/taxtopics/tc430.html

You can claim your trade is long term or short term depending on how long you've owned your policy as discussed in the above link.

Tom Young


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