I bought PSEC 3000 shares one month ago. Recently I found some rumor about it.

Today's the deadline - if you owned PSEC as of 11:59 yesterday then you have to send the IRS 10% of the value of your PSEC holdings by TODAY!

See here. and the following image. image

Also I heard about spinoff of it.What is the "spinoff"? Should I pay tax as well?

I don't know how to do?

  • 2
    Pick out the relevant portion from the portal and stick it here. Just went there and somebdy was bashing up a gay/lesbian person.
    – DumbCoder
    Commented Apr 15, 2015 at 16:48
  • @DumbCoder, English is not my native language. It's hard to understand the messages on the board.
    – Love
    Commented Apr 15, 2015 at 17:01
  • 1
    Usage of English has nothing to do with it. I asked just pick up the relevant portion and put it here. Like the whole trail, did the poster post his source or where did he get the news from. That would be relevant and help you in getting a good answer.
    – DumbCoder
    Commented Apr 16, 2015 at 9:22
  • @DumbCoder, there is no direct link of the message. The yahoo put one link with many pages message together. I guess it is now in page 3. It is a bad design of the web page. I attached a snapshot in the context.
    – Love
    Commented Apr 16, 2015 at 12:36

1 Answer 1


It looks like it has to deal with an expiration of rights as a taxable event. I found this link via google, which states that

Not only does the PSEC shareholder have a TAXABLE EVENT, but he has TWO taxable events. The net effect of these two taxable events has DIFFERENT CONSEQUENCES for DIFFERENT SHAREHOLDERS depending upon their peculiar TAX SITUATIONS.

The CORRECT STATEMENT of the tax treatment of unexercised PYLDR rights is in the N-2 on page 32, which reads in relevant part as follows:

“…, if you receive a Subscription Right from PSEC and do not sell or exercise that right before it expires, you should generally expect to have (1) taxable dividend income equal to the fair market value (if any) of the Subscription Right on the date of its distribution by PSEC to the extent of PSEC’s current and accumulated earnings and profits and (2) a capital loss upon the expiration of such right in an amount equal to your adjusted tax basis (if any) in such right (which should generally equal the fair market value (if any) of the Subscription Right on the date of its distribution by PSEC).”

Please note, for quarterly “estimated taxes” purposes, that the DIVIDEND taxable events occur “ON THE DATE OF ITS DISTRIBUTION BY PSEC (my emphasis),” while the CAPITAL LOSS occurs “UPON EXPIRATION OF SUCH RIGHT” (my emphasis). They do NOT occur on 31 December 2015 or some other date.

However, to my knowledge, neither of the taxable events he mentions would be taxed by 4/15. If you are worried about it, I would recommend seeing a tax professional. Otherwise I'd wait to see the tax forms sent by your brokerage.

  • I got some information here. Can somebody summary it? I really don't understand it.
    – Love
    Commented Apr 20, 2015 at 20:10

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