Proshares tax disaster

Quote from gnome:

No. The distribution does not adjust the cost basis... in the example, $100 is the cost basis both before and after the diistribution. I don't trade individual stocks.. but I believe I'm correct in saying that a stock dividend does NOT adjust your cost basis when accounting for taxes* .... and if it did, it would be unfair and bad for you.

Reinvesting the distribution has no effect on taxes. Even if it's reinvested, you'd still pay the tax on the distribution this year.
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Okay, I misunderstood your earlier comment. What you posted here is my understanding as well.
 
As you can see, probably 1/2 or more of the sophisticates here on ET are clueless.

What's worse is they are more than happy to share their ignorance with all.
 
Quote from stock777:

As you can see, probably 1/2 or more of the sophisticates here on ET are clueless.

What's worse is they are more than happy to share their ignorance with all.
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well, I consider myself one of the infinite number of clueless ET stooges, but something just doesn't add up for me. How is this any different from, say, 2-for-1 stock split? This would also bring the stock price from $100 to $50 but your STCG or LTCG remains essentially the same (so I would think) even if you were to sell on the day of the split? Likewise, wouldn't the STCG distribution offset any tax expenses, provided that you do receive the distribution.

Sorry if this sounds too naive. I personally don't trade either stocks or ETFs and I'm the biggest jackass when it comes to tax matters.
 
Quote from saliva:

well, I consider myself one of the infinite number of clueless ET stooges, but something just doesn't add up for me. How is this any different from, say, 2-for-1 stock split? This would also bring the stock price from $100 to $50 but your STCG or LTCG remains essentially the same (so I would think) even if you were to sell on the day of the split? Likewise, wouldn't the STCG distribution offset any tax expenses, provided that you do receive the distribution.

Sorry if this sounds too naive. I personally don't trade either stocks or ETFs and I'm the biggest jackass when it comes to tax matters.
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A stock split is very different. It's a non-taxable event and it does adjust the cost basis.

In the above $100 example, a 2:1 stock split would produce no tax consequences at all, and the cost basis would be adjusted to $50.
 
While I love trading many of the etf's leveraged and not, I just don't understand why anyone would trade the spy,qqqq, or dia's or any leveraged off-shoot of. The mini's allow you to determine your leverage and are tax advantaged at 60%-40%.
 
The whole point of me posting this thread was a public service.

This capital gains bs was a ream job. The etf managers did little or nothing to protect those using their gambling instruments.

Watch your back, these thieves will steal the stains from your jockey shorts.

UnderwearBreath.jpg
 
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