Print Page  Close Window

Expected Tax Implications
$1.60 dividend paid on Universal American Corp. common stock on August 19,
2013

All of the distribution paid on August 19, 2013 was a return of capital for federal tax purposes and will not be currently taxable. The return of capital distribution reduces the holder’s basis in their Universal American stock.

For example, if you owned 100 shares of Universal American Corp. common stock on the record date, August 12, 2013, you received a $160 distribution. Of that distribution no amount is currently taxable; the entire $160 is a return of capital that reduces your basis in each share of stock by $1.60. 

Please see your personal tax advisor to determine how this information should be used on your personal tax return. This information is meant as general information only.

 

Mandatorily Redeemable Preferred Stock:

 

Expected Tax Implications
2013 dividends paid on Universal American Corp. Mandatorily Redeemable Preferred Stock

All of the distributions paid during 2013 were a return of capital for federal tax purposes and will not be currently taxable. The return of capital distribution reduces the holder’s basis in their Universal American stock.

For example, if you owned 100 shares of Universal American Corp. mandatorily redeemable preferred stock on the record date of all four payments made in 2013, you received a $212.50 distribution. Of that distribution no amount is currently taxable; the entire $212.50 is a return of capital that reduces your basis in each share of stock by $2.125. 

Please see your personal tax advisor to determine how this information should be used on your personal tax return. This information is meant as general information only.