Lehman Brothers Financial SA (LEHNQ)

[dhyan40]

Tax question on LEHJQ and CTS

Sorry for building castles in the air, but sure would like some information on below since hearing from Cotton this week, it looks like we finally may get something.

As far as I know any appreciation of Js and CTs is considered a long term capital gain (LTCG).
https://www.wsj.com/buyside/personal-finance/capital-gains-tax-523f6394

I bet with most of our volumes of holding, we will fall in the highest 20% LTCG tax bracket.

Are there any surcharges in addition to this LTCG tax rate of 20%? Those in Florida dont have to worry about state taxes, but I guess state taxes will also apply to those in other states.

Now the main part is the dividend and interest income?

Even though many here says income from CTs is a dividend, I checked with an accountant and she says that any income from CTs is considered as interest income and NOT dividend income. According to her, CTs are not stocks and so their income cannot be considered as dividends.
https://www.fool.com/investing/stock-market/types-of-stocks/dividend-stocks/how-dividends-taxed/


I cannot post a link from Quantum but you can check for yourself in Quantum.
https://www.quantumonline.com/search.cfm
LEHKQ, LEHLQ, LHHMQ, LEHNQ
CTs are Preferred Securities -- Securities are different from LEHJQ which is preferred stock.

But I had this doubt that my accountant could not answer -- is income from securities considered as dividend income? It does not say bonds, it says Trust Preferred Security so securities means some sort of stock or am I wrong - I dont know the intricacies of securities -- are they loans or equity?
Because in Quantum is says CTs were sold in an IPO as shares? So if CTs were sold as shares in an IPO arent they considered as equity?

Lehman Brothers Holdings Capital Trust VI, 6.24% Preferred Securities, Series N
Ticker Symbol: LEHNQ CUSIP: 52520X208 Exchange: OTOTC
Security Type: Trust Preferred Security
Security's Distribution is Suspended!
IPO - 1/7/2005 - 8.00 Million Shares @ $25.00 /share. Link to IPO Prospectus
Previous Ticker Symbol: LEH-N Changed: 9/17/2008
Market Value $3.4 Million


Lehman Brothers Holdings Capital Trust V, 6.00% Preferred Securities Series M
Ticker Symbol: LHHMQ CUSIP: 52520E200 Exchange: OTOTC
Security Type: Trust Preferred Security
Security's Distribution is Suspended!
IPO - 4/6/2004 - 16.00 Million Shares @ $25.00 /share. Link to IPO Prospectus
Previous Ticker Symbol: LEH-M Changed: 9/17/2008
Market Value $7.2 Million


Lehman Brothers Holdings Capital Trust IV, 6.375% Preferred Securities Series L
Ticker Symbol: LEHLQ CUSIP: 52520B206 Exchange: OTOTC
Security Type: Trust Preferred Security
Security's Distribution is Suspended!
IPO - 10/14/2003 - 12.00 Million Shares @ $25.00 /share. Link to IPO Prospectus
Previous Ticker Symbol: LEH-L Changed: 9/17/2008
Market Value $6.5 Million

Lehman Brothers Holdings Capital Trust III, 6.375% Preferred Securities Series K
Ticker Symbol: LEHKQ CUSIP: 52519Y209 Exchange: OTOTC
Security Type: Trust Preferred Security
Security's Distribution is Suspended!
IPO - 3/14/2003 - 12.00 Million Shares @ $25.00 /share. Link to IPO Prospectus
Previous Ticker Symbol: LEH-K Changed: 9/17/2008
Market Value $4.8 Million




So does that mean our interest income from CTs will be tax at the regular slab rates -- then 37% will be the highest tax slab. Are there any surcharges in addition to this 37%?
https://www.thebalancemoney.com/interest-income-3193087

However Js are considered as Preferred stock and it mentions the same thing in Quantum online.
https://www.quantumonline.com/search.cfm?tickersymbol=LEHJQ&sopt=symbol

Lehman Brothers Holdings, 7.95% Dep Shares Non-Cumul Preferred Stock, Series J
Ticker Symbol: LEHJQ* CUSIP: 52520W317 Exchange: OTOTC
Security Type: Traditional Preferred Stock

So income from Js is considered as Dividend income and max tax slab is 20%

Over the last 15 years, some of have moved out of the USA so they are considered non residents and are tax exempt in USA from all capital gains taxes. But are they also tax exempt in USA from dividend and interest payments made by Js and CTs?

Would appreciate any information on the same. Thanks for reading this.