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These gains don't cause pain. A capital gain is the amount of money you pocket by selling one of your investments for more than you paid for it. Technically, capital gains only count for what's called a capital asset, but that's really just anything you own for investment purposes. Stocks and bonds obviously qualify, but your house and household furnishings can also count.
For tax purposes, capital gains are classified as either long-term (held for more than one year) or short-term (held for less than one year) and there are different tax implications for how long you hold onto a capital asset. For most long-term capital gains, you're taxed no more than 15% of the value of the asset. Short-term gains get taxed as regular income, so you pay the rate for the tax bracket you're in.
Capital gains can also be realized or unrealized. When you physically sell an asset like a stock, you've realized the capital gain. When you're holding the stock, and it has a value over its purchase price, but you're not selling it, you've got an unrealized gain, and you won't realize it until you sell.
In a perfect world, we'd all have capital gains. But no one¿s that smart or lucky. When the value of an asset at sale is below what you've paid for it, it's called a capital loss. The good news is that the government lets you count that loss against any gains you've had, lowering the taxes you pay. In fact, many people who sell a stock that has risen far over their purchase price tend to sell some stinkers, too, at the same time for the tax benefit. This is known as a capital-loss offset.
Home / Markets / Industries / Technology
Tuesday, August 19, 2008
Momentum Acquires IT Hosting Business From BroadSpire
Comtex
MARKHAM, ONTARIO, Aug 19, 2008 (MARKET WIRE via COMTEX) ----Momentum Advanced Solutions Inc. (TSX: WWW), ("Momentum" or the "Company"), a leader in IT hosting and managed website services, announced today the acquisition of the IT hosting division of BroadSpire(R), Inc. located in Los Angeles, California.
Momentum purchased the business for $2.66M USD before transaction costs with $1.70M USD satisfied by way of cash on closing and the balance by way of a note payable over 24 months, with payments beginning 6 months after the closing date. The addition is expected to add approximately $1.50M to Momentum's current managed services revenues.
"Momentum has a 25 year history and a leadership position in large scale, enterprise level", managed hosting , stated Phil DeLeon, President of Momentum. "Over the past year, we also added services directed at small and medium sized businesses. We believe that our broad experience will ensure a seamless transition for customers who will now benefit from our expanded service offerings."
For 25 years Momentum has managed the IT infrastructure for some of the world s largest companies. Momentum possesses SAS70 certification, four Microsoft Gold certifications, three data center locations and over 150 experts, delivering Obsessive Support(TM).
"Pure-play hosting represented only a portion of BroadSpire's overall business but consisted of some very strong customer relationships," said Steve Huot, President of BroadSpire. "We are pleased to have found these customers the ideal home with a strong, focused organization that places an extremely high value on service. We were approached by many firms that were interested in this transaction, but selected Momentum because we felt they could ensure continuity in the quality of service that our customers have come to expect and bridge the gap to serve large and small customers alike," concluded Mr. Huot.
Since its inception in 1997, BroadSpire has offered web hosting as a component of a broader portfolio of services. BroadSpire's success pioneering a service it calls Web ecosystem marketing(TM) hastened the company s desire to divest certain assets that were no longer core.
About Momentum Advanced Solutions Inc.
Momentum is a leader in IT hosting and managed website services. Its solutions provide customers with the innovation, integration, and operational expertise needed to reduce costs and/or improve productivity by outsourcing their mission critical, web-based applications and infrastructure to Momentum. Headquartered in Markham, Ontario, Momentum has offices in Ottawa, Windsor, and Toronto. Momentum Advanced Solutions is publicly traded on the Toronto Stock Exchange and trades under the symbol WWW.
Momentum and Obsessive Support are trademarks of Momentum Advanced Solutions, Inc. BroadSpire and Web ecosystem marketing are trademarks of BroadSpire, Inc. All rights reserved.
Forward-looking Information
This news release contains forward-looking information that is based on management's best estimates and the current operating environment. This forward-looking information relates to, but is not limited to, the incremental revenue due to the acquisition of the BroadSpire assets and the timing for the integration of the BroadSpire hosting assets and customers. Forward-looking information typically contains words such as "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. These statements are based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, including Momentum s perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. In the case of the incremental revenue that is expected, this expectation is primarily based on Momentum s perception of historical trends. In the case of the anticipated timing for the integration of the BroadSpire assets and customers this timing is based on managements best estimate based on prior experience.
Such forward-looking information is as of the date hereof and is subject to a number of known and unknown risks, uncertainties and other factors which could cause actual results or events to differ materially from future results or events expressed, anticipated or implied by such forward-looking information. Such factors include, in the case of the incremental revenue that is expected, the loss of current customers or a need to reduce prices to retain customers and in the case of the anticipated timing for the integration of the BroadSpire assets and customers, greater than anticipated differences in technology, resistance from customers or vendors in changing current arrangements or the loss of employees of BroadSpire that are being utilized by Momentum during the integration period. Such factors may also include but are not limited to, changes in markets and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes and results may differ materially from those expressed in such forward-looking information. Forward-looking information is provided for the purpose of providing information about management's current expectations and plans relating to the assets being acquired. Readers are cautioned that such information may not be appropriate for other purposes. Other than as may be required by law, Momentum disclaims any intention or obligation to update or revise any such forward-looking information, whether as a result of new information, future events or otherwise.
Contacts: Momentum Advanced Solutions Inc. Sheldon Pollack Chief Executive Officer (905) 709-6825 Email: Sheldon.Pollack@Momentum.com Momentum Advanced Solutions Inc. Daren Selfe, CA Chief Financial Officer (905) 709-6800 Email: Daren.Selfe@Momentum.com Website: www.momentum.com
SOURCE: Momentum Advanced Solutions Inc.
mailto:Sheldon.Pollack@Momentum.com mailto:Daren.Selfe@Momentum.com http://www.momentum.com
Copyright 2008 Market Wire, All rights reserved.
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