can some one shed a light on this? When will taxable event occur?
I would say depending on the frequency of return distributions you are receiving… you are receiving the return on a portfolio of like concertrated security holders like yourself and the time frame is 7 years. is this correct?
Minimum is 7 years I believe. And you will still have the SAME tax basis as before you entered the PE fund.
bigwilly so what happens after 7 years? you get your stock back?
You get your proportion of all the different stocks in teh fund back. So if there Was IBM, APPL, HUN, PENN, CSU, BSE you would get your Proportionate share of all those stocks, but you will still have the same tax basis. Bonus is diversification.
ok, i see how it works, that makes sense