Q. How do holders of our common stock treat cash distributions for U.S. federal income tax purposes?
A. Distributions paid on shares of common stock will be taxable to you as dividend income to the extent those distributions are paid out of our current or accumulated earnings and profits. If you are an individual, such dividend income will be subject to tax at long-term capital gains rates provided you meet certain holding period and other requirements. Distributions on our shares of common stock in excess of our current or accumulated earnings and profits will be treated as a return of capital to the extent of your basis in your shares of common stock and any such payments in excess of your basis will be taxed as capital gain.
There is a link below to a completed Form 8937 for 2013. This form contains U.S. federal income tax treatment information for the 2013 cash distribution paid on the shares of Gordmans' common stock that we are required to provide pursuant to U.S. Treasury Regulations and IRS guidance.
Form 8937: 2013 Common Stock Distribution
Gordmans also has prepared a more detailed summary of the U.S. federal income tax treatment information for the 2013 common stock distribution. There is a link below to the summary.
Gordmans 2013 Common Stock Distribution Memo
As tax treatments may vary due to individual status and other considerations, Gordmans urges you to consult your own tax advisor for your individual treatment. Gordmans does not provide tax advice.