Replies to post #63316 on Biotech Values

[DewDiligence]

[OT] >Question about PDLI's one time dividend payment. Does anyone know how this transaction is treated from a tax perspective? Is it treated as a dividend or as a capitol gain/loss. I have lost money on PDLI as I purchased the stock in the low $20, and don't want to pay taxes.<

The tax status of the distribution depends only on the company and has nothing to do with whether your PDLI holding has produced a profit or a loss.

The notes accompanying Form 1099 will tell you what proportion of the distribution is to be treated as a LT capital gain and what proportion is to be treated as a non-taxable return of capital.