North Coast Life Insurance Company Announces Tax Allocations of 2006 Dividend Distributions.SPOKANE, Wash. -- North Coast Life Insurance Company (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :NCLIP) today announced the tax allocation of the 2006 dividend distributions on its preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. . Form 1009-DIV will summarize sum·ma·rize intr. & tr.v. sum·ma·rized, sum·ma·riz·ing, sum·ma·riz·es To make a summary or make a summary of. sum the allocation of the 2006 dividends paid on shares of the preferred stock. The amounts indicated on Form 1099-DIV Form 1099-DIV A form sent to investors by investment fund companies. The form is a record of all taxable capital gains and dividends paid to an investor, including those that have been re-invested in a given taxation year. should be reported on each stockholder's 2006 federal income tax return. The schedule below, presented on a per share basis, is provided for information purposes only, and should only be used to clarify the Form 1099-DIV. The 2006 distributions paid with respect to North Coast Life Insurance Series A Preferred Stock (Cusip No. 658654207) are as follows:
Ordinary Return of
Payment Date Total Dividend Dividend % Capital %
------------ -------------- ---------- ---------
4/28/06 $0.25 79.00% 21.00%
7/31/06 $0.25 79.00% 21.00%
10/31/06 $0.25 79.00% 21.00%
For 2006, the ordinary dividends are considered qualified. The return of capital distributions are generally not taxable in the year of payment but are deferred until the disposition of the shares. Return of capital distributions reduce the original cost basis of the investment which is used in calculating any gain or loss in the year of disposition. Shareholders are advised to consult their tax advisors A tax advisor is a financial expert especially trained in tax law. Some countries require tax advisors to verify the balance sheets of companies above a certain size. Individuals usually require tax advisors to minimize taxation, to avoid learning the details of tax law in for proper tax calculations when disposing of shares. The taxability of the 2006 dividends is not indicative of the taxability of future dividends. About North Coast Life North Coast Life is a life insurance company headquartered in Spokane, Washington Spokane (pronounced [spoʊ̯ˈkæn]) is a city located in Eastern Washington. The seat of Spokane County, Spokane is the metropolitan center of the Inland Northwest, the second largest city in Washington state, and , specializing in the family marketplace with interest sensitive whole life (trademark name "Versatile Life"), traditional whole life, term life and a complete line of annuity products. More information is available at www.nclife.com. |
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