Having owned BGF since March of 2005, I just completed a basis spreadsheet of the costs for my newly found BGS shares. Lots of fun making this up, as I had to factor in the yearly returns of capital. Even more fun that I have had divvy reinvestment since owning the shares.

I took any BGF share purchase price and subtracted $7.15 from each (value of the bond) to get my BGS share price. Since these bonds were not traded outside of the EIS, I made the assumption that their price could not increase or decrease. So for the bonds just redeemed, I basically have a 6% capital gain that I will report on my 09 taxes.

It was suggested elsewhere that on the day of BGF purchases to look up the BGS price and use that in basis calculations. I did not do this, as I felt there was a daily disparity between BGF and BGS shares (kind of an apples and oranges thing). I feel that if and when I sell my BGS shares using my basis calculations, everything will come out in the wash due to my consistency in the calculation process.

Anyone agree or disagree with my rationale? Comments, please.