KAT Exploration Inc (KATX)

[art35]

Mr Gump

You are entirely incorrect--

The share distribution is not a gift---as in a taxable parcel

The share distribution is not a dividend either---as a dividend has a determined value for tax deduction value for the issuer and an identifiable taxable amount for the receiver---

The BVIG distribution is more a return of capital from KATX , a distribution of a capital asset---cost basis is zero ---

Fully taxable upon sale

If you give your shares of BVIG to a relative---their cost basis will be the mkt value at that time ,, as will the gift basis be for you,, using the IRS one time exemption and the annual gift exemtion amounts----

Anything in excess of that, the IRS will tax from a zero cost basis---

cheers

PS--Mr Gump,,, if you take an American rope to Canada and hang yourself--you'll be just as dead in Canada as in America...